Commercial insurance is based on what concept?

Question

Quizplus · Accepted Answer

Commercial insurance is based on the concept of classification of risk, which involves grouping similar risks together and charging a premium based on the likelihood of that risk occurring. This allows insurance companies to spread the risk among many policyholders and provide coverage to those who need it most. The other options (B, C, and D) are not directly related to the concept of commercial insurance.

Commercial Insurance Is Based on What Concept