Question

insurance is a financial service that allows a
consumer to transfer all risk to a company.
company to control finances for a consumer.
consumer to share liability with a company.
company to maximize risk for a consumer.

Explanation:

To solve this, we analyze each option:

• Option 1: Insurance doesn't transfer "all" risk (e.g., deductibles, policy limits exist), so incorrect.
• Option 2: Insurance companies don't control a consumer's finances; they provide risk coverage, so incorrect.
• Option 3: In insurance, the consumer (policyholder) and the company (insurer) share liability for covered risks (e.g., the company pays claims, consumer pays premiums and may have deductibles), so this is correct.
• Option 4: Insurance is to manage/reduce risk for the consumer, not maximize it, so incorrect.

Answer:

C. consumer to share liability with a company.