Mark Owns a 2006 Sedan

question 22

Multiple Choice

Mark owns a 2006 sedan. The last time Mark renewed his auto insurance, he decided to drop the physical damage insurance on this vehicle. How is Mark dealing with the auto physical damage exposure in his personal risk management program?

• A) risk transfer
• B) passive retention
• C) avoidance
• D) active retention

---

Definitions:

Informant Reports

When the people close to someone (e.g., roommates, family, friends) report on his or her personality.

Personality Study

The branch of psychology that focuses on the investigation of individual differences, traits, and characteristics that define a person's typical behavior and thinking.

Physiology

The branch of biology that deals with the normal functions of living organisms and their parts.

Social Desirability

The tendency to answer questions or behave in a manner that is viewed favorably by others, often leading to distortion in self-report measures.