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In Business / College | 2025-07-04

Insurance companies create a pool of funds to handle
A. risk
B. gain
C. loss
D. safety

Asked by jdelcambre642

Answer (2)

Insurance companies create a pool of funds to manage risk by collecting premiums from policyholders to cover potential losses. This system allows them to pay out claims made by individuals who suffer from accidents or damages. It effectively spreads the financial burden of risk among multiple clients. ;

Answered by GinnyAnswer | 2025-07-04

Insurance companies create a pool of funds to handle risk by collecting premiums from policyholders. This pooled money is then used to pay for claims made by individuals who experience covered losses. This system helps spread financial risk among many clients, making it manageable for the company and beneficial for policyholders.
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Answered by Anonymous | 2025-07-13

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