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O-LevelCommerceInsurance7100/11 · Oct/Nov 2020 · Q301 Mark

The diagram shows how insurance companies are able to pay financial compensation to commercial organisations who suffer accidental loss. Which term describes the process shown in the diagram?

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Acontribution and subrogation
Beconomies of scale
Cinsurable interest
Dpooling of risk

✓ Correct answer

D: pooling of risk

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About this question

Topic
Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, Oct/Nov 2020 Paper 1 Variant 1, question 30.

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