JAMB Commerce 2005 Question 2

Question 2

Insurance

The most important benefit of insurance is that it provides

  1. A.control over activities
  2. B.the insured with a right to premium
  3. C.the insured with a right to full compensation
  4. D.protection against risks
Show the answer and explanation

Answer: D (protection against risks)

Explanation

Insurance pools the losses of the few among many, protecting businesses and people against financial loss from risks.