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All insurance is based on a principle called

Kaitlin Dean

in Mathematics

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Timothy Norman on November 13, 2018

The correct answer is:Risk.Explanation:All types of insurance, home, auto, life, etc, are based on the risk a company takes on the provision of insurance.Each person has a specific risk of being in an auto accident. This risk can be raised or lowered by specific behaviors, different types of cars, age of driver, etc Every person has a risk of losing your home. This may be based on the location of the house, the materials used in the construction, etc, These risk factors will increase or decrease the amount a person pays in premiums, so that the company does not lose money.


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