Laura Evans is risk manager of LMN Company.Laura decided to retain certain property loss exposures.Which of the following is a method that Laura can use to fund the retained property losses?
A)current net income
B)private insurance
C)noninsurance transfer
D)high deductibles

Question

Quizplus · Accepted Answer

Using current net income is a method to fund retained losses, where a company allocates a portion of its current earnings to cover any losses that occur. This approach allows the company to directly manage its financial risk without transferring it to an insurance company or another party.

Laura Evans Is Risk Manager of LMN Company