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:

Cardinal Traits

Fundamental personality characteristics that dominate and shape an individual's behavior and attitudes.

Secondary Traits

The least important traits, which a person may display inconspicuously and inconsistently.

Propriate Functional Autonomy

The level of functional autonomy that relates to our values, self-image, and lifestyle.

Expressive Behavior

Spontaneous and seemingly purposeless behavior, usually displayed without our conscious awareness.