Which of the Following Types of Risk Cannot Typically Be

question 13

Multiple Choice

Which of the following types of risk cannot typically be transferred to an insurance company?

• A) Losses due to property damage from storms.
• B) Losses due to on-the job injuries suffered by employees.
• C) Losses due to rising raw materials costs that cannot be passed on to customers.
• D) Losses due to the untimely death of an employee in a key position.

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Definitions:

Lipid

Substance composed principally of carbon, oxygen, and hydrogen; contains a lower ratio of oxygen to carbon and is less polar than carbohydrates; generally soluble in nonpolar solvents.

Carbohydrate

Monosaccharide (simple sugar) or the organic molecules composed of monosaccharides bound together by chemical bonds—for example, glycogen. For each carbon atom in the molecule, there are typically one oxygen molecule and two hydrogen molecules.

Subcutaneous Fat

The layer of fat located under the skin, serving as insulation to regulate body temperature and as an energy reserve.

Muscle Mass

Refers to the amount of muscle tissue in an individual's body, typically measured in terms of volume or weight.