Which one of the following statements is correct regarding the benefits provided by insurance?

Which one of the following statements is correct regarding the benefits provided by insurance?



A. The reduction in losses paid by insurers due to risk control measures benefits individual insureds, but not society as a whole.
B. Insurance helps reduce the financial burden to society by compensating accident victims.
C. The primary role of insurance is to meet mandatory insurance requirements.
D. Insurance reduces the financial consequences of loss exposures, but not the related uncertainty.


Answer: B. Insurance helps reduce the financial burden to society by compensating accident victims.

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