All of the Following Are Disadvantages of Using Insurance in a Risk

question 40

Multiple Choice

All of the following are disadvantages of using insurance in a risk management program EXCEPT

• A)There is an opportunity cost because premiums must be paid in advance.
• B)Considerable time and effort must be spent selecting and negotiating coverages.
• C)It results in considerable fluctuations in earnings after losses occur.
• D)Attitudes toward loss control may become lax when losses are insured.

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Definitions:

Divide

A fundamental arithmetic operation that consists of determining how many times one number is contained within another.

Simplify

To reduce a mathematical expression to its most basic form, making it easier to work with.

Multiply

To increase a number by a specified factor, or the operation of adding a number to itself a certain number of times.

Simplify

To alter an expression to make it easier to understand or work with, often by combining like terms or applying mathematical operations.