Insurance distributes risk based on the principle of

1. Insurance pools risk from many policyholders and pays from the pool when a covered loss occurs. 2. The insurer's promise is generally one of indemnity—restoring the insured's position without profit. 3. Other doctrines listed apply to sales, contracts and equitable remedies, not insurance pricing. 4. Hence (B) is correct. _Source: Maharashtra Balbharati Std XII OCM, Ch 5 "Business Services", §5.3 ¶§5.3_