Multiple choice

Planned acceptance of losses by deductibles, deliberate non-insurance and loss-sensitive plans where some risk is consciously retained rather than transferred is known as ________

  1. risk empowerment

  2. risk retention

  3. risk provision

  4. risk management
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A form of self-insurance employed by organizations, which have determined that the cost of transferring risk to an insurance company is greater over time than that of retaining the risk and paying for losses out of their own reserve fund is known as risk retention.

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