A Special Form of Planned Retention by Which Part or All

question 41

Multiple Choice

A special form of planned retention by which part or all of a give loss exposure is retained by the firm is called

• A)hedging.
• B)self-insurance.
• C)passive retention.
• D)noninsurance transfer.

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Definitions:

Illusory Correlation

The perception of a relationship between two variables when none exists.

Self-Serving Attribution

A common tendency to attribute successes to personal characteristics and failures to external factors.

Internal Attribution

The process of explaining one's own or others' behavior as due to personal, intrinsic factors.

External-Unstable

A causation attribution in psychology where an individual attributes events to causes outside themselves that are variable or subject to change.