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What are noninsurance transfers?
What are noninsurance transfers?
- Methods of transferring speculative risks to another party using other means besides insurance.
- Methods of transferring pure risks to another party using other means besides insurance. (correct)
- Methods of transferring pure risks to another party using insurance.
- Methods of transferring speculative risks to another party using insurance.
Which of the following is an example of a noninsurance transfer?
Which of the following is an example of a noninsurance transfer?
- Signing a lease agreement. (correct)
- Starting a business.
- Investing in stocks.
- Purchasing an insurance policy.
What is the advantage of using noninsurance transfers in a risk management program?
What is the advantage of using noninsurance transfers in a risk management program?
- They transfer all potential losses to another party.
- They can transfer potential losses that are not commercially insurable. (correct)
- They always cost less than insurance.
- They always provide limited liability for the owners of a business.
What is the disadvantage of using noninsurance transfers in a risk management program?
What is the disadvantage of using noninsurance transfers in a risk management program?
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When is insurance appropriate in a risk management program?
When is insurance appropriate in a risk management program?
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