Which of the following describes an insurance company's role?

The role of an insurance company primarily revolves around providing insurance policies to the public. Insurance companies are financial institutions that offer protection against unexpected financial losses through various types of insurance, such as health, auto, home, and life insurance. By purchasing these policies, individuals and businesses can transfer the financial risk of certain events (like accidents, disasters, or illnesses) to the insurance company in exchange for regular premium payments.

This mechanism not only helps ensure that policyholders can manage financial loss but also contributes to overall economic stability by allowing individuals to recover from unforeseen circumstances. The core business of an insurance company is to assess risks and provide coverage that meets the needs of their clients.

While managing real estate properties, providing loans, and investing in stocks and bonds can be activities associated with some financial institutions, they do not define the primary function of an insurance company. In essence, offering insurance policies is at the heart of what an insurance company does, making it the correct description of their role.