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

question 38

Multiple Choice

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

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, enforcing societal norms and values and controlling the desires of the id.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive behind human behavior, emotions, and thoughts.

Libido

Libido, in psychoanalytic theory, is the energy derived from sexual instincts and desires that drive individual behavior and psychological processes.

Value

The degree of importance or worth attributed to something, which guides people’s choices and behavior, reflecting personal or societal standards.