Which of the following statements concerning the selection of risk management techniques and insurance market conditions is (are)true?
I.It's easier to purchase affordable insurance during a "soft" market than during a "hard" market.
II.Retention is used more during a "soft" market than during a "hard" market.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

I is true because during a "soft" market, insurance premiums are generally lower and underwriting standards may be more relaxed, making it easier and more affordable to purchase insurance. II is incorrect because retention (self-insuring or assuming more risk) is typically used more during a "hard" market, when insurance premiums are high and coverage is harder to obtain, not during a "soft" market.

Which of the Following Statements Concerning the Selection of Risk