JAMB Commerce 2009 Objective — Question 22

Question 22 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2009 Objective paper, with the correct answer and a full explanation.

22. The most important reason for the existence of insurance business is to

A. prevent the occurrence of any loss
B. spread losses to all covered participantsCorrect
C. provide for the replacement of facilities
D. encourage individuals to save

Explanation

The essence of an insurance policy is to spread risk among people of similar situation.

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