The purchase of insurance is a common form of which risk management technique:
A)risk retention
B)risk transfer
C)risk assumption
D)risk avoidance
E)loss control

Question

Quizplus · Accepted Answer

The purchase of insurance is a form of risk transfer, where the risk is transferred from the individual or organization to the insurance company. In exchange for paying a premium, the insurance company bears the financial responsibility of covering losses that are specified in the policy.

The Purchase of Insurance Is a Common Form of Which