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:

Amortization

The systematic and rational allocation of the acquisition cost of an intangible asset over its useful life

Cash Inflow

Money coming into a business or an account, from various sources like sales, financing, or investment returns.

Sierra Legal Defence Fund

An organization dedicated to using legal avenues to protect the environment and advocate for conservation efforts, now known as Ecojustice Canada.

Raw Sewage

Untreated, unfiltered waste water and contents from residential, commercial, and industrial sources, containing a variety of contaminants.