Insurance is the best risk management tool when the chance of loss is _________________ and the loss severity is _____________________.
A)high, low
B)low, high
C)high, high
D)low, low

Question

Quizplus · Accepted Answer

Insurance is most effective when the chance of loss is low but the potential severity of the loss is high, as it helps to mitigate significant financial impacts from rare but costly events.

Insurance Is the Best Risk Management Tool When the Chance