Question & Answer

Insurance represents the process of risk ___.

Insurance represents the process of risk. Choose an option below: selection avoidance assumption transference

1 Answer

Verified archive
Quizzma TeamOctober 25, 2025

The correct answer is transference.

Insurance is essentially the process of transferring the financial risk of certain events, such as accidents or natural disasters, from individuals or businesses to an insurance company. When you purchase insurance, you are transferring the burden of potential loss to the insurer, which helps to mitigate the impact of those risks on your financial situation. If you have more questions or need further assistance, feel free to ask!