You learned about the purpose of insurance and the principles that guide insurance contracts. Apply these fundamentals in a comment on one or more of the following statements about insurance:

• Thepurposeofhealth insuranceisto pool risk, whichby definition means some health care costs will be shifted from those who arehealthier to those who are sicker.
• The purpose of insurance is to help to manage the negative effects of risk on our personal and working lives.
• Insurancecontributes significantly toeconomic growthby improving the investment climate and promoting a more efficient mix of activities of economy than would be undertaken in theabsence of risk management instruments.
• Insurance facilitates loans to individuals and organizations by guaranteeing that the lender will be paid if the collateral for the loan is destroyed or damaged by an insured event.