Which of the following is an example of risk sharing?

Risk sharing refers to the practice where multiple parties contribute to cover potential losses or liabilities they may face. When doctors pool their money to cover malpractice exposures, they collectively share the financial risk associated with malpractice claims. By doing so, they reduce the burden on any single doctor, as the costs of these claims can be significant. This collaborative approach allows them to protect one another against unforeseen expenses related to their professional practice.

In contrast, the other options illustrate different concepts: purchasing separate health insurance policies does not create a shared financial responsibility among individuals; insurance companies merging is about corporate strategies rather than a direct risk-sharing mechanism among individuals or professionals; and sharing policy dividends pertains to the distribution of profits rather than the mutual coverage of financial risks.