Author Question: Members of Mid-South Petroleum Distributors, a trade group, had trouble obtaining affordable ... (Read 59 times)

Marty · **on:** Jul 11, 2018

Members of Mid-South Petroleum Distributors, a trade group, had trouble obtaining affordable pollution liability insurance. The members formed a group captive that is exempt from many state laws that apply to other insurers.

This group captive is called a(n)
A) reinsurance pool.
B) Lloyd's association.
C) alien insurer.
D) risk retention group.

Question 2

All of the following statements about the administration of a risk management program are true EXCEPT

A) The risk manager is an important part of a firm's management team.
B) A risk management policy statement can be used to educate top executives about the risk management process.
C) If a risk management program is properly designed, periodic review of the program is unnecessary.
D) In order to properly identify loss exposures, the risk manager needs the cooperation of other departments.