The _____ likely an event is to occur,and the _____ the potential amount that the insurance company must pay,the _____ the price that you must pay for coverage.

Question

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The more likely an event is to occur, the greater the potential amount that the insurance company must pay, and therefore, the higher the price that you must pay for coverage. This relationship is captured in the principle of insurance called “risk transfer.” The insurance company assumes the risk of loss for the insured in exchange for premium payments. As the risk of loss increases, the premium that the insured must pay also increases.

The _____ Likely an Event Is to Occur,and the _____

The _ Likely an Event Is to Occur,and the _