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Questions and Answers
What is one of the major social and economic benefits of insurance?
What is one of the major social and economic benefits of insurance?
- Decrease in job opportunities
- Increase in fraudulent activities
- Reduction of investment funds
- Enhancement of credit (correct)
Which of the following is a major social cost associated with insurance?
Which of the following is a major social cost associated with insurance?
- Indemnification for loss
- Loss prevention
- Cost of doing business (correct)
- Reduction of worry and fear
What is one characteristic of an insurance plan or arrangement based on the provided definition?
What is one characteristic of an insurance plan or arrangement based on the provided definition?
- Risk multiplication
- Payment for intentional losses
- Pooling of gains
- Payment of fortuitous losses (correct)
Which aspect is NOT considered as one of the major social costs of insurance?
Which aspect is NOT considered as one of the major social costs of insurance?
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What benefit does insurance provide through 'Source of investment funds'?
What benefit does insurance provide through 'Source of investment funds'?
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