Question 1012 of 303 · California Life-Only Agent Exam
A business pays a $1,000 deductible itself and insures losses above that. Which risk management method does the deductible represent?
Exactly one answer is correct.
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Correct answer to question 1012
- B: Retention
Explanation
Retention means the insured keeps part of the risk, as with deductibles. The remainder is transferred to the insurer.
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