All of the Following Are Potential Advantages of Retention EXCEPT

question 58

Multiple Choice

All of the following are potential advantages of retention EXCEPT

• A)lower expenses.
• B)increased cash flow.
• C)encouragement of loss prevention.
• D)protection from catastrophic losses.

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Premiums

The amounts paid regularly to an insurance company in exchange for coverage, protecting against financial losses.

Life Insurance

A type of insurance that pays a specified amount upon the policy holder’s death; a creditor often requires a borrower to take out life insurance to cover the loan in the event the borrower dies before the loan is paid.

Social Security Credits

Denotes the basic unit for determining eligibility for Social Security benefits, based on the amount of earned income over a worker's lifetime.