Which is not an essential characteristic of an insurance contract?A. transfer of significant risk from the issuer to the policyholderB. policyholder pays the issuer for the transfer of riskC. issuer indemnifies the policyholder for losses when the insuredevent occursD. none of the above

Answer is A. transfer of significant risk from the issuer to the policyholder Explanation is given…

Answered: Which is not an essential…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which is not an essential characteristic of an insurance contract? A. transfer of significant risk from the issuer to the policyholder B. policyholder pays the issuer for the transfer of risk C. issuer indemnifies the policyholder for losses when the insured event occurs D. none of the above