Insurance is defined as pooling of risk because many people
- with common interest make claims every year
-
with common risk insure with the same company
- with common interest insure with reinsurance company
- form common association to help themselves
The correct answer is: B
Explanation
Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower risk ones. The company is able to offer higher risk policyholders more affordable coverage as a result.