Which of the Following Pools Would Be the BEST Subject

question 50

Multiple Choice

Which of the following pools would be the BEST subject for a fully-funded self-insurance arrangement?

• A)Employment practices liability coverage for a petroleum refinery located in Texas
• B)Automobile physical damage coverage for a national rental car chain, with 100 locations and approximately 3,000 automobiles of similar value at each location
• C)Medical malpractice liability coverage for all doctors and nurses employed by a group of 3 hospitals in Florida
• D)$50,000 of life insurance on every employee of a life insurance company located in New York, with no physical exam required to obtain insurance.

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Definitions:

Transportation-In

Costs associated with bringing inventory to a business, which are often added to the purchase price of goods.

Office Supplies

Various everyday items used in offices for tasks such as writing, organization, and communication, including pens, paper, and staplers.

Petty Cash

A small amount of cash on hand used for covering minor expenses.

Cash Over and Short

An account that records the discrepancies between the expected cash count and the actual amount of cash received or paid out, indicating errors or theft.