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Which of the following is not a function of an insurance company?  

Economics
JAMB 2025

Which of the following is not a function of an insurance company?

 

  • A. Collection of deposits from the public for investment
  • B. Encouragement of savings habits through life assurances
  • C. Mobilization of funds through premiums collected
  • D. Granting of loans on long-term basis for investment
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Correct Answer: Option A
Explanation

Collection of deposits from the public is not a function of an insurance company. Insurance companies operate by collecting
premiums from policyholders, which are used to pay out claims. They do not collect deposits like banks do. Their primary
functions include risk management, mobilization of funds through premiums, encouraging savings habits through life assurances,
and granting loans for investment.


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