Properly estimating loss severity is essential in treating a loss exposure because the potential severity is a major consideration in determining whether to

Properly estimating loss severity is essential in treating a loss exposure because the potential severity is a major consideration in determining whether to



A. Use risk control or risk financing.
B. Use loss avoidance or loss prevention.
C. Insure or retain a particular loss exposure.
D. Physically inspect or rely on a loss exposure survey.


Answer: C. Potential severity is a major consideration in determining whether to insure or retain a particular loss exposure.

Popular posts from this blog

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need: