A. with common interest make claims every year
B. with common risk insure with the same company
C. with common interest insure with a reinsurance company
D. form a common association to help themselves
Correct Answer: Option B
B. with common risk insure with the same company
Explanation
Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower-risk ones. The company is able to offer a higher risk of policyholders more affordable coverage as a result.
