Risk Management Is the Transfer of Certain Risks from an Individual

question 52

True/False

Risk management is the transfer of certain risks from an individual to an insurance company.

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Definitions:

Liable

Being legally responsible or obligated; for example, due to negligence or breach of contract.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith, for value, and without notice of any defects, and thus has certain legal protections.

Protections

Measures or provisions put in place to guard against harm, damage, or legal infringement, particularly in legal, economic, and technological contexts.

Negotiable Instrument

A textual document that pledges the payment of an exact monetary amount, to be made either when asked or at a predetermined time, and it specifies who will make the payment.