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Which of the Following Is True of Insurance

Question 64

Multiple Choice

Which of the following is true of insurance?


A) All risks are insurable.
B) An insurance company only charges a fee for large businesses with over 100 employees.
C) Insurance companies make profits by requiring a relatively large fee compared to the amount of loss that is possible.
D) The insurance company makes a profit by collecting premiums from many businesses for the same set of risks.

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