Pooling of risk in insurance means that?

COMMERCE
JAMB 2001

Pooling of risk in insurance means that?

  • A. compensations are paid out of a common fund
  • B. two people can pool their risks to be insured
  • C. two insurance companies can buy two policies
  • D. insurance companies should encourage taking risks.

Correct Answer: A. compensations are paid out of a common fund



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