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    Question

    A type of insurance often used for high frequency low severity risks where risk is not transferred to an insurance company but retained and accounted for internally is known as?

    A Hospital Insurance Correct Answer Incorrect Answer
    B Hull Insurance Correct Answer Incorrect Answer
    C Group Insurance Correct Answer Incorrect Answer
    D Self-Insurance Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Self-insure is a risk management technique in which a company or individual sets aside a pool of money to be used to remedy an unexpected loss. Theoretically, one can self-insure against any type of loss. In practice, however, most people choose to purchase insurance against potentially large, infrequent losses.

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