Which One of the Following Statements, is Correct?
A)Insurance protects the Asset from Damage.
B)Insurance prevents the Losses.
C)Insurance reduces the Possibility of Loss.
D)Insurance indemnifies the Insured, in the Event of a Loss.

Question

Quizplus · Accepted Answer

Insurance does not prevent losses or reduce the possibility of loss, nor does it protect the asset from damage directly. Instead, it provides financial compensation (indemnification) to the insured party if a covered loss occurs, helping to mitigate the financial impact of the loss.

Which One of the Following Statements, Is Correct