What is the basic purpose of insurance?

What is the basic purpose of insurance?
A . To protect the public from personal liability and property damage
B . To help successful litigants recover legal costs
C . To leap assets beyond the risk of creditors
D . To spread and shift risk

View Answer

Answer: D

Explanation:

The basic purpose of insurance is to spread and shift risk. This is fundamental to the concept of insurance, which pools the risk of financial losses from individual members of a large group, allowing them to share the financial risks associated with potential losses spread across all members.