WAEC - Insurance (2017 - No. 20)
Insurance is defined as pooling of risk because many people
with common interest make claims every year
with common risk insure with the same company
with common interest insure with reinsurance company
form common association to help themselves
Explanation
Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower risk ones. The company is able to offer higher risk policyholders more affordable coverage as a result.
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