Insurance works on the principle of
A)Trust
B)Sharing
C)Randomness
D)All the above

Question

Quizplus · Accepted Answer

Insurance works on the principle of trust, sharing, and randomness. Trust is important because the insured must trust that the insurer will pay out the benefits in the event of a loss. Sharing is important because the premiums paid by the insured are pooled together to pay for the losses of the few. Randomness is important because the occurrence of a loss is unpredictable.

Insurance Works on the Principle of