Low-frequency,low-severity loss exposures are best handled by
A)avoidance.
B)retention.
C)insurance.
D)noninsurance transfer.

Question

Quizplus · Accepted Answer

Low-frequency, low-severity loss exposures are typically not worth the expense and effort of insuring or transferring. Instead, it is usually more cost-effective to retain the risk and cover losses internally. Avoidance may also be an option in some cases, but it may not always be feasible or practical.

Low-Frequency,low-Severity Loss Exposures Are Best Handled by