A Formal Program of Risk Retention for an Individual That

question 2

Multiple Choice

A formal program of risk retention for an individual that takes on the insurance company's role in order to cover the individual's risk is:

• A)Adverse selection.
• B)Formal fund.
• C)Risk transfer.
• D)Self-insurance.

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Definitions:

Market Success

The degree to which a company or a product meets its sales or market share goals, often as a result of effective strategy, quality, and consumer satisfaction.

Financial Stability

The condition in which an organization or individual has a strong financial foundation, characterized by solvency, adequate liquidity, and low levels of debt, enabling endurance through economic fluctuations.

Viability

The ability of a project, idea, or entity to work successfully and sustainably.

Life Cycles

The series of changes in the life of an organism or product, including birth or inception, growth, maturity, and decline or death.