n NISM Certifications
X NISM Series X
Medium

Which statement is NOT characteristic of insurance?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Accidental events can be insured

  2. B

    Loss is shared among a group

  3. C

    The insured is restored to original financial position

  4. Losses involving no gain are considered only

    Correct answer

Why this is the answer

Insurance covers losses resulting from risks, but the statement about no gain is misleading; insurance focuses on loss, not gain.

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