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What is the basis for the concept of risk pooling?
A risk pool is one of the forms of risk management mostly practiced by insurance companies. [ Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophic risks such as floods, earthquakes etc. The term is also used to describe the pooling of similar risks that underlies the concept of insurance. ]
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Asked 10/2/2010 1:25:04 PM
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