Question: What of the following statements, concerning the transfer of losses in insurance contracts, is/are true? Insurance transfers the risk of loss to the insured. The insured pays the insurer a premium to agree that if certain events (losses) occur, money will be provided to the insured to pay for the consequences of those losses. The insurer provides the insured with a legally binding contract called the insurance policy. The greater the chance a loss will occur, the lower the price of the insurance premium and the greater the likelihood that an insurance company will agree to insure.