A contract between two or more parties in which one party agrees,for a fee,to assume the risk of another is called _____.

Question

Quizplus · Accepted Answer

Insurance is a contract in which one party (the insurer) agrees to assume the risk of another party (the insured) for a fee (the premium). The insurer provides coverage for specified losses and in return, the insured pays the premium to the insurer. This protects the insured against financial losses that may occur due to unforeseen events. Options A, C, and D do not accurately describe this type of agreement.

A Contract Between Two or More Parties in Which One