Post Utme Uniben 2019 Commerce Question 20

Practice objective / multiple choice question 20 from the 2019 Post Utme Uniben Commerce examination.

Post Utme Uniben 2019 Commerce Objective / Multiple Choice

Question 20 POST_UTME_UNIBEN • 2019 • COMMERCE • objective

An insurance company's policyholder pays a premium to cover the risk of loss or damage to their property. Explain the concept of risk pooling.

Correct Answer A. The process of spreading risk across a large number of policyholders

B. The process of charging a higher premium to policyholders who are considered high-risk

C. The process of paying out claims to policyholders who have suffered a loss

D. The process of investing premiums in a diversified portfolio

Correct Answer

Correct Option:

The process of spreading risk across a large number of policyholders

This is Post Utme Uniben 2019 Commerce Question 20. It is one of the objective questions from the 2019 Post Utme Uniben Commerce examination.

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