_____ Involves Abstaining from Any Activity That Will Affect an Individual

question 36

Multiple Choice

_____ involves abstaining from any activity that will affect an individual financially.

• A) Risk avoidance
• B) Loss prevention
• C) Loss control
• D) Risk assumption
• E) Premium collection

---

Definitions:

Escrow Company

A neutral third-party entity that holds assets, including money, property, and documents, on behalf of other parties during the completion of a transaction.

Financing Statement

A document filed to give public notice of a secured transaction, indicating an interest in the assets of a debtor.

Collateral

Collateral offered to secure a loan, subject to seizure upon default.

Collection Agency

An organization employed by creditors to collect funds that are owed by individuals or businesses, usually when those debts are past due.