Q:
      
      
         
            
All Insurance is based on a principle called
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: B) division of risk         
         
Explanation: Any type of insurance, be it home, auto, life, health, etc. are based on a principle of division of risk.
 
Division of Risk :: This is based on how much risk the insurer estimates the insured's coverage to be. The riskier the opportunity (bad health, area the home is in) the higher the premium costs.
       
      
      
      
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