The principle that considers the importance of insurance is the ________ principle.
A)agency problem - beware the sales pitch
B)all risk is not equal
C)time value of money
D)protect yourself against major catastrophes
E)none of the above

Question

Quizplus · Accepted Answer

The principle of "protect yourself against major catastrophes" emphasizes the importance of insurance as a means to mitigate financial losses from unforeseen and potentially ruinous events such as natural disasters, accidents, and illnesses. This principle underscores the necessity for individuals and businesses to assess their exposure to risk and identify the types of insurance coverage that can provide adequate protection.

The Principle That Considers the Importance of Insurance Is the ________