Which of the statements is correct?
A. One of the methods of risk retention is by way of voluntary excess or deductible available under the policy.
B. Another method of retention of risk is to absorb small losses as normal operating expenses of business.

Related MCQs

• Which of the statement are true? A. Risk retention and risk transfer are some of the techniques to manage risks. B. Implementation is one of the steps in risk management
• Which of the statements is correct? Under a fire policy A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets.
• Which of the statements is correct? A. The simplest way to deal with a risk is to avoid it. B. This technique is always possible and practical.
• __________ is a voluntary termination of the contract by the policy holders.
• Under ________ insurance, loss of profit policy is called as consequential loss policy
• The transit risk caused by fire is covered under ________ policy
• Which of the following statements is true: Under a fire policy
• Which of the statements is correct? A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets.
• _____________ Policy is granted only in respect of stocks of inventories of the insured under fire insurance business.
• Which of the following is true? A. Policy form is a legal document. B. The warranties inserted in a policy safeguard the interest of the insured.