Hector Had Been Asked to Serve on the Board of a Major

Hector had been asked to serve on the board of a major pharmaceutical firm.He reluctantly declined,citing the firm's lack of liability coverage for outside members of the board of directors.Hector's decision indicates that he:

A) will self-insure against a loss from legal action taken against the pharmaceutical firm.
B) feels that the potential loss from legal action against this firm is an uninsurable risk.
C) insists that the firm follow the rule of indemnity.
D) will manage his risk by avoiding the potential loss from a liability suit directed at the board of directors.