Insurance is defined as pooling of risk because many people
-
A.
with common interest make claims every year -
B.
with common risk insure with the same company -
C.
with common interest insure with reinsurance company -
D.
form common association to help themselves
Correct Answer: Option B
Explanation
Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower risk ones. The company is able to offer higher risk policyholders more affordable coverage as a result.