California Insurance License Exam Practice Test Practice Question
All of the following are benefits of insurance EXCEPT it
Correct Answer: A
Rationale: Insurance offers numerous advantages, but it does not eliminate fraudulent losses. While insurance helps mitigate risks and provides financial protection, it cannot prevent dishonest claims or fraudulent activities.
Option B is accurate as insurance companies invest premiums, generating funds that can benefit policyholders. Option C correctly identifies that insurance provides financial support for covered losses, helping individuals recover from unexpected events. Option D highlights how insurance reduces uncertainty by offering a safety net against potential losses, allowing individuals and businesses to plan with greater confidence.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now