Spreading risk among a large number of people is a major principle of insurance.

Name: Spreading risk among a large number of people is a major principle of insurance.
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Insurance works by collecting premiums from a large number of policyholders and using those funds to pay for the losses of the few who experience an insured event. This spreads the risk across a large pool of people, reducing the financial burden on any one individual.

Spreading Risk Among a Large Number of People Is a Major