Mark owns a 2006 sedan. The last time Mark renewed his auto insurance, he decided to drop the physical damage insurance on this vehicle. How is Mark dealing with the auto physical damage exposure in his personal risk management program?
A) risk transfer
B) passive retention
C) avoidance
D) active retention

Question

Quizplus · Accepted Answer

Mark is dealing with the auto physical damage exposure through active retention, which means he is taking full responsibility for any damages that may occur to his vehicle, and thus choosing not to transfer any of the risk to an insurance company.

Mark Owns a 2006 Sedan