Final answer:
Risk pooling is a method used in insurance where individuals pool their resources to create a common fund that can be used to cover the losses or damages experienced by some members of the group.
Step-by-step explanation:
An example of risk pooling in the context of insurance is when individuals pool their resources together to create a common fund that can be used to cover the losses or damages experienced by some members of the group. This helps distribute the financial risk among a larger population, making it more affordable for individuals to access insurance coverage. For instance, in health insurance, risk pools are created to cover the medical expenses of a large group of people, with contributions from all members being used to pay for the healthcare needs of those who require it.