SEO MCQ Question Page

Which statement best explains Insurance?

Practice this MCQ with options, instant answer checking, explanation, exam-wise filters, next/previous navigation and shareable result image.

Question ID #26937 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 5 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

← Previous Question Next Question →

Which statement best explains Insurance? - MCQ Explanation

This question is useful for exam preparation because it provides direct multiple-choice practice with options, answer checking and explanation.

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