In an Effort to Minimize the Cost of Conventional Property/casualty

question 86

Multiple Choice

In an effort to minimize the cost of conventional property/casualty insurance, XYZ Electronics decided to manage their risk by self-insuring. The most likely way XYZ would try to do this would be to:

• A) cover small and medium-sized losses itself, and carry conventional insurance only for catastrophic losses.
• B) carry insurance for the small, routine losses and pay for any highly unusual major losses with its own funds.
• C) buy an insurance policy that covers all risks.
• D) establish a well-monitored loss-prevention program.

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Definitions:

Place Theory

Theory on how the inner ear registers the frequency of sound, stating that each frequency produces vibrations at a particular spot on the basilar membrane.

Cone Receptors

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of colors.

Auditory Nerve

The nerve structure that receives information about sound from the hair cells of the inner ear and carries these neural impulses to the brain’s auditory areas.

Cochlea

A spiral-shaped, fluid-filled inner ear structure crucial for converting sound waves into nerve signals.