Some loss exposures are not easy to retain, avoid, or control. What risk management technique is frequently used to treat such exposures?

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Some loss exposures are not easy to retain, avoid, or control. What risk management technique is frequently used to treat such exposures?

A.Reinsurance
B.Transfer
C.Prevention
D. Reunderwriting

Answer: B. The risk management technique of transfer is often used to treat loss exposures that are not easily treated by retention, avoidance, or control.

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?

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The voluntary relinquishment of a legal right is called
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