General Insurance
A firm raises the deductible on its cover and keeps the first layer of loss itself. Which method of handling risk is that?
Answer and explanation
Answer: C. Retention means keeping a loss exposure for one's own account, and a deductible is the everyday form of it. Avoidance removes the exposure, reduction lowers frequency or severity, and sharing spreads a loss across a group of similarly exposed parties.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, methods of handling risk
More general insurance questions
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