Insurance companies provide a service to the community by protecting it against expected and unexpected disasters. Before an insurance company will agree to insure anything, it collects accurate figures about the risk. It knows, for example ,that the risk of a man being killed in a plane accident is less than the risk he takes in crossing a busy road. This enables it to quote low figures for travel insurance. Sometimes the risk may be high, as in motor racing or mountaineering. Then the company charges a much higher price. If too many climbers have accidents, the price raises still further. If the majority of climbers fall off mountains, the company will refuse to insure them. An ordinary household may wish to protect his home against fire or his property against burglary. A shop-keeper may wish to insure against theft. In normal cases, the company will check its statistics and quote a premium. If it is suspicious, it may refuse to quote. If it insures a shop and then receives a suspicious claim, it will investigate the claim as a means of protecting itself a gainst false claims. It is not unknown for a businessman in debt to burn down his own premises so that he can claim much money from his insurance company. He can be sure that the fire will be investigated most carefully. Insurance companies also accept insurance against shipwreck or disaster in the air. Planes and ships are very expensive, so a large premium is charged, but a reduction is given to companies with an accident-free record. However, in one way or another, insurance companies receive premium payments. These payments can form. a very large total running millions of dollars. The company does not leave the money in the bank. It invests in property, shares, farms and even antique paintings and stamps. Its aim is to obtain the best possible return on its investment. This is not as greedy as it may seem, since this is one way by which it can keep its premiums down and continue to make a profit while being of service to the community. According to the first paragraph, which of the following statements is true?