One of the benefits to a business of retaining a loss exposure instead of insuring it is

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One of the benefits to a business of retaining a loss exposure instead of insuring it is

A. A reduction in expenses.
B. A greater peace of mind.
C. Access to the insurer's loss control services.
D. Increase in expenses.

Answer: A. Retaining losses rather than insuring them creates a reduction in expenses.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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