Which of the following represents the reason that insurance companies are willing to assume the risk of certain potentially devastating losses for other companies?
A) Insurance companies have more experience with the risk.
B) In return for a sum of money,they are protected against certain losses.
C) Profit
D) The ultimate purpose of insurance is to indemnify policyholders.
E) Insurance companies know the likelihood of a particular loss.
Correct Answer:
Verified
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