n NISM Certifications
X NISM Series X
Medium

True or False: The primary purpose of insurance is to provide protection against accidents, uncertainties, and future risks.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Insurance’s main function is risk transfer, offering protection from unforeseen events and ensuring financial stability against future uncertainties.

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