Which of the following is not true of insurance?

A. A large number of people face the same risk
B. A Possibility of making profit out of an event
C. only a small number will actually suffer the loss in any one year
D. A large number makes a small contribution to a common pool
E. Possibility of assessing the frequency of occurrence of the event

Correct Answer:

Option B – A Possibility of making profit out of an event