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Which statement best explains Insurance?

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Question ID #27566 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 10 Medium

Which statement best explains Insurance?

Correct Answer: B. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Insurance: Risk-transfer arrangement under which an insurer provides financial protection in return for premium

Question: Which statement best explains Insurance?

A. Insurer's right, after paying a loss, to pursue recovery from a responsible third party

B. Risk-transfer arrangement under which an insurer provides financial protection in return for premium

C. Insurance purchased by an insurer to transfer part of its own risk

D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms

Correct Answer: B. Risk-transfer arrangement under which an insurer provides financial protection in return for premiumInsurance: Risk-transfer arrangement under which an insurer provides financial protection in return for premium

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Which statement best explains Insurance? - MCQ Explanation

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Correct answer: B. Risk-transfer arrangement under which an insurer provides financial protection in return for premium