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State whether the following are true or false with reasons.A contract of insurance is a wagering agreement.?
Published April 8, 2011
Question by Srikanta C: State whether the following are true or false with reasons.A contract of insurance is a wagering agreement.?
State whether the following are true or false with reasons.A contract of insurance is a wagering agreement.
Best answer:
Answer by RB
False. A contract for insurance is a “transfer of risk”. In wagering, someone will win & someone will lose. By paying insurance premiums, you are transfering a set amount of risk to the other party to protect yourself against a loss.
What do you think? Answer below!