[amp_mcq option1=”Premium” option2=”Policy” option3=”Insurance” option4=”Contract” correct=”option3″]
The correct answer is C. Insurance.
Insurance is a social device for eliminating or reducing the loss of society from certain risk. It is a contract between an insurer and an insured, in which the insurer agrees to pay the insured a sum of money in exchange for a premium, in the event that a specified event occurs.
The insured is the person or entity who is protected by the insurance policy. The insurer is the company that provides the insurance policy. The premium is the amount of money that the insured pays to the insurer on a regular basis. The event that is specified in the insurance policy is called the insured event.
There are many different types of insurance, including life insurance, health insurance, property insurance, and car insurance. Each type of insurance protects against a different type of risk.
Life insurance protects the insured’s family or beneficiaries in the event of the insured’s death. Health insurance helps to pay for medical expenses. Property insurance helps to pay for damage to property caused by fire, theft, or other events. Car insurance helps to pay for damage to a car or other property caused by an accident.
Insurance is important because it helps to protect people from financial loss. It can also help to provide peace of mind.