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A primary function of insurance is the?

A primary function of insurance is the?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Creation of a common pool
  • B Provision of security
  • C Stimulation of business enterprises
  • D Loss prevention and control
Correct Answer: Option D
Explanation:
The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain and at the happening of risk, the person will suffer the loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from sufferings.

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