1. the purpose of insurance is to...\n a. build wealth\n b. transfer risk\n c. manage assets\n d. build…

1. the purpose of insurance is to...\n a. build wealth\n b. transfer risk\n c. manage assets\n d. build relationships\n2. why is it important for insurance companies to have a large risk pool of people paying premiums?\n a. if a large pool of people pay premiums, insurance company employees will get more bonuses included in their next paycheck\n b. the premium payments of all the insured clients will cover the costs for the emergencies of the few who need it\n c. the more people that pay premiums, the more careful each insured client becomes with their lifestyle choices\n d. a large pool of people paying premiums allows insurance companies to have a larger social media following\n3. what role does math play in the insurance industry?\n a. insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit\n b. insurance companies use algebra and geometry to calculate the distance from clients major emergencies to nearest hospitals\n c. insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies\n d. insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit

1. the purpose of insurance is to...\n a. build wealth\n b. transfer risk\n c. manage assets\n d. build relationships\n2. why is it important for insurance companies to have a large risk pool of people paying premiums?\n a. if a large pool of people pay premiums, insurance company employees will get more bonuses included in their next paycheck\n b. the premium payments of all the insured clients will cover the costs for the emergencies of the few who need it\n c. the more people that pay premiums, the more careful each insured client becomes with their lifestyle choices\n d. a large pool of people paying premiums allows insurance companies to have a larger social media following\n3. what role does math play in the insurance industry?\n a. insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit\n b. insurance companies use algebra and geometry to calculate the distance from clients major emergencies to nearest hospitals\n c. insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies\n d. insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit

Answer

Brief Explanations:

  1. Insurance is a mechanism to shift the risk of potential losses from an individual or entity to an insurance - company. So, its main purpose is to transfer risk.
  2. Insurance companies operate on the principle of pooling risks. A large number of people paying premiums create a fund that can cover the losses of the few who experience an insured - event.
  3. Insurance companies use statistical methods to assess the probability of clients making claims. This helps them set appropriate premiums to maximize profit.

Answer:

  1. b. transfer risk
  2. b. The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it
  3. a. Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit