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Monica [59]
3 years ago
10

Explain how insurance companies use risk pooling to generate a profit for their

Business
1 answer:
gavmur [86]3 years ago
6 0

Answer: By creating risk pools, insurance companies help spread the risk and avoid the type of massive payout required after a catastrophic loss. It is a form of risk management for insurance companies. If a claim is made for reimbursement due to that catastrophic loss, the participating insurance companies spread the loss among themselves.

Explanation:

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<em>Prescription medications, glasses, false teeth, </em>and <em>hearing aids </em>are also included but non-prescription drugs -<em>but insulin</em>- are not deductible. Thus, vitamins and healthy food prescriptions are not deductible.

5 0
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One right of the free enterprise system is the right to​
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The demand curve facing a perfectly competitive firm is:
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