A ________ company shares risks with its policyholders in return for payment of a premium.
A) life insurance
B) venture capital
C) credit union
D) sales finance
E) factoring

Question

Quizplus · Accepted Answer

A life insurance company provides coverage in the unfortunate event of a policyholder's death, and shares the risk of such an event with the policyholders in return for payment of a premium. Other options like venture capital, credit unions, sales finance, and factoring do not involve risk-sharing with policyholders in this way.

A ________ Company Shares Risks with Its Policyholders in Return