Which of the following types of loss exposures are best handled by the use of avoidance?
A) low-frequency, low-severity loss exposures
B) low-frequency, high-severity loss exposures
C) high-frequency, low-severity loss exposures
D) high-frequency, high-severity loss exposures
Question 2
Which of the following types of loss exposures may be appropriately handled through the purchase of insurance?I. High-frequency, low-severity loss exposures II. Low-frequency, high-severity loss exposures
A) I only
B) II only
C) both I and II
D) neither I nor II
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