Ask Question
28 June, 04:54

How does insurance protect a policyholder against financial loss?

A. by allowing the policyholder to make premium payments

B. by allowing the policyholder to make a claim for reimbursement

C. by allowing the policyholder to avoid maintenance costs for the insured items

D. by allowing the policyholder to pay for all the losses

+2
Answers (2)
  1. 28 June, 06:58
    0
    (A) by allowing the policyholder to make premium payments

    Explanation:

    Insurance is a risk sharing device where the risk is shared between the policyholder and the insurance company through regular periodic payment called premium.

    With the payments of premium, at the time of financial loss, loss sharing is possible between the policyholder and the Insurance Company as per the terms of the Insurance contract, entered by the two.

    Hence, loss sharing at the time of financial loss is only possible when the policyholder pays regular premiums.
  2. 28 June, 07:49
    0
    B) By allowing the policyholder to make a claim for reimbursement
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “How does insurance protect a policyholder against financial loss? A. by allowing the policyholder to make premium payments B. by allowing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers