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Author Question: Which of the following conditions is (are) appropriate for using retention? I. Losses are difficult ... (Read 85 times)

Anajune7

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on: Jul 11, 2018
Which of the following conditions is (are) appropriate for using retention? I. Losses are difficult to predict. II. The worst possible loss is not serious.
 
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

Which of the following statements regarding the use of retention is (are) true?
 
  I. Retention is best used for loss exposures that have a low frequency and a high severity.
  II. A financially strong firm can have a higher retention level than a firm whose financial position is weak.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II


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LP

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Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: B

Answer to Question 2

Answer: B


Anajune7

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Reply 2 on: Jul 11, 2018
Gracias!

kswal303

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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