What term is used to describe the process of transferring responsibility for risk between parties?

The correct answer is associated with the term "Contract wordings," which refers to the specific language and terms laid out in a contract that detail the responsibilities and obligations of each party involved, including the transfer of risk. This process is crucial in insurance and risk management, as it delineates how risks are allocated and managed between the insurer and the insured.

In risk management, effective contract wordings ensure that each party understands their roles and the extent of risk they are assuming or transferring. When one party transfers risk to another through a contract, such as an insurance policy, it clearly articulates responsibilities, delineating who is liable in the event of a loss or damage.

The other options pertain to different concepts within insurance and risk management. Risk pooling involves combining the risks of multiple entities to reduce the impact of individual losses, which doesn't specifically address the transfer of responsibility. Liability assumption relates to taking on another party's legal responsibilities, which is a component of risk management but does not encompass the overall process of transferring risk contractually. Policy endorsement refers to modifications made to an insurance policy but is not a term used to describe the overall process of risk transfer.

Thus, "Contract wordings" accurately captures the essence of how risk is effectively managed through agreements