Which of the following best defines insurance?

A. It is a contract whereby a party transfers his right to receive interest to a third-party such as an agent
B. It is a contract whereby a party transfers a risk of physical injury to the risk bearer for a fee
C. It is a contract whereby a party transfers his right to a claim for a particular fee
D. It is a contract whereby a party transfers a risk of financial loss to a risk bearer for a fee


Ans: D. It is a contract whereby a party transfers a risk of financial loss to a risk bearer for a fee

Business

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