Question

Which of the following BEST describes a primary service that a typical insurance company provides for paying customers?

Answer 1

It accepts financial responsibility for major unforeseen expenses describes a primary service that a typical insurance company provides for paying. customers.

Option c

Explanation:

Insurance company runs the business by providing financial coverage against the unforeseen situation. Company calculate quantify the risk determining the cost of replacing. Premium needs to be paid by the insurer. The primary function of the insurance company is to accept the financial responsibility for unforeseen expenses.

After collecting the necessary proofs insured company provide insured amount to the insurer. Other functions of the insurance companies are pricing and assuming risks, evaluation of the proof of insurer, reinsurance, interest earning and revenue calculation etc.