Which defines insurance?(1 point)

Question

Responses

a program that manages risk by avoiding it
a program that manages risk by avoiding it

a risk control strategy that encourages taking action to reduce the likelihood of a loss occurring.
a risk control strategy that encourages taking action to reduce the likelihood of a loss occurring.

an agreement between two individuals to protect each other against negative events
an agreement between two individuals to protect each other against negative events

a policy purchased from a company that provides financial protection against financial loss or harm caused by a possible event

Answer 1

The definition that best defines insurance is:

a policy purchased from a company that provides financial protection against financial loss or harm caused by a possible event.