Which of the following is not true of insurance?

The option that is not true of insurance is "Possibility of making a profit out of an event." Insurance is a system in which a large number of people contribute a small amount of money into a common pool, which is used to compensate the few who suffer losses due to a specified risk. The fundamental principle of insurance is that a large number of people face the same risk, but only a small number will actually suffer a loss in any one year. The premiums collected from the many policyholders are used to compensate the few who suffer losses. Therefore, it is not possible to make a profit out of an event covered by insurance, as insurance is not intended to generate a profit but to provide financial protection against loss.