Abandoning an Existing Loss Exposure Is an Example of

question 39

Multiple Choice

Abandoning an existing loss exposure is an example of

• A)avoidance.
• B)retention.
• C)noninsurance transfer.
• D)insurance transfer.

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Definitions:

Financing Commitment

An assurance provided by a lender indicating the terms under which they agree to lend money to a borrower.

First Mortgage

A primary lien on a property that has precedence over all other claims or liens in the event of default or sale.

Mortgage Assignment

The transfer of a mortgage from one party to another, either for the benefit of changing lenders or selling the debt to another entity.

Reed Bank

A submerged reef in the South China Sea, known for its disputed territorial claims and rich natural resources.