All of the Following Statements About Risk Retention Are True

question 59

Multiple Choice

All of the following statements about risk retention are true EXCEPT

• A)It may be used intentionally if commercial insurance is unavailable.
• B)It may be used passively because of ignorance.
• C)Its use is most appropriate for low-frequency,high-severity types of risks.
• D)Its use results in cost savings if losses are less than the cost of insurance.

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Definitions:

Total Ordering

A mathematical concept referring to a complete arrangement or sequencing of elements according to a specific order, without any pair of elements being incomparable.

Inheritance

A fundamental concept in object-oriented programming where a class (subclass) can inherit fields and methods from another class (superclass), promoting code reuse.

Base Class

A class from which other classes are derived, containing methods and properties that can be inherited or overridden.

Inner Classes

Classes declared within another class's body, allowing for closer association with the enclosing class.