Question

Insurance ______.

Options

• promotes safety and security

• spreads risk from the insured to the insurer

• both promotes safety and security and spreads risk from the insured to the insurer

• none of these

Answer 1

Insurance promotes safety and security and spreads risk from the insured to the insurer.

Explanation:

Insurance promotes safety and security by providing financial protection to individuals and their families against unforeseen losses like accidents, fire, theft, or lawsuits. It also spreads risk from the insured to the insurer by transferring the potential financial loss from the individual to the insurance company in exchange for payment of a premium. This sharing of risk helps reduce uncertainty and financial burdens, ensuring stability and economic security for people.