Ben obtains a fire insurance policy on his house with Constant Insurance Company. Like all insurance, this policy is an arrangement for

Question

Quizplus · Accepted Answer

Fire insurance policy is a form of transferring and allocating the risk of potential loss due to the fire from the policyholder to the insurer. The insurer takes the responsibility of compensating for the loss in exchange for the premium paid by the policyholder. It helps the policyholder to avoid the burden of financial liability in case of any loss due to the fire.

Ben Obtains a Fire Insurance Policy on His House with Constant