Author Question: All of the following are disadvantages of using insurance in a commercial risk management program ... (Read 198 times)

deesands · **on:** Jul 11, 2018

All of the following are disadvantages of using insurance in a commercial risk management program EXCEPT

A) There is an opportunity cost because premiums must be paid in advance.
B) Considerable time and effort must be spent selecting and negotiating coverages.
C) It results in considerable fluctuations in earnings after losses occur.
D) Attitudes toward loss control may become lax when losses are insured.

Question 2

Which of the following statements about the use of deductibles is (are) true? I. They represent risk retention by insurance purchasers. II. They tend to increase the cost of adjusting small claims.

A) I only
B) II only
C) both I and II
D) neither I nor II