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Insurance Carriers » Services » Basic Insurance Information » Risk Transference
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Risk Transference

Risk transference or pooling involves the transfer of risk from an individual to a larger pool of the insurance company's policyholders.  The insurance company charges a few, the prmium (or portion), for accepting responsibility of the risk.  The insurance compny pools the premiums together and uses the total pool to cover any contract benefits.

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Basic Insurance Information

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