risk distribution
Used in tax deductibility discussions, risk distribution mandates that enough independent risks of unrelated parties be pooled to invoke the actuarial law of large numbers.
risk distribution
Used in tax deductibility discussions, risk distribution mandates that enough independent risks of unrelated parties be pooled to invoke the actuarial law of large numbers.
Additional Information
In tax disputes, the Internal Revenue Service (IRS) and numerous courts have required the presence of both risk shifting and risk distribution to find a financial arrangement to be "insurance."
