Exam DISC-RM Practice Question 470
Study guide: Exam DISC-RM
Twelve independent bakeries agree that whenever one of them suffers an equipment breakdown, all twelve will share the repair cost equally. No insurer is involved. Which description fits this arrangement?
- A) It is insurance, because it combines pooling with risk transfer
- B) It is risk transfer without pooling, because each loss leaves the bakery that suffers it
- C) It is avoidance, because no single bakery bears a breakdown alone
- D) It is pooling without transfer of the risk to a third party
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