Author Question: The U.S. government is concerned that terrorists might try to crash a vehicle loaded with explosives ... (Read 46 times)

cartlidgeashley · **on:** Jul 11, 2018

The U.S. government is concerned that terrorists might try to crash a vehicle loaded with explosives into a U.S. embassy in a foreign country. Inside the gate to the embassy, they installed steel and cement posts in the road.

These posts can be raised up from the ground to form a barrier against suicide bombers. The posts can be lowered back into the ground to allow safe vehicles to pass. This physical barrier system illustrates which risk management technique?
A) risk avoidance
B) insurance transfer
C) loss prevention
D) noninsurance transfer

Question 2

Morris Company self-insures its workers compensation loss exposure. The risk manager of Morris Company is concerned about the possible impact of a single catastrophic claim.

She decided to set a retention limit of 500,000 per-claim, and to purchase insurance that will be begin to pay once Morris Company has paid 500,000 on a single claim. The insurance the risk manager purchased is called
A) captive insurance.
B) excess insurance.
C) primary insurance.
D) umbrella insurance.