All insurance is based on a principle called

Question

Mathematics

Oompa Loompa

27 September, 18:48

All insurance is based on a principle called

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Answers (2)

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Armando Mcgrath · Answer 1

Armando Mcgrath 27 September, 21:32

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Division of risk

So it's right

Swiss Miss · Answer 2

Any type of insurance, be it home, auto, life, health, etc. are based on a principle of division of risk. This is based on how much risk the insurer estimates the insured's coverage to be. The riskier the opportunity (bad health, area the home is in) the higher the premium costs.