One of the following is not a positive effect of retention: a. Lower expenses b. Increased cash flow c. Decreasing risk of occurrence of losses d. Encouragement of loss prevention When there is a possibility of causing a loss or damage to a property, the insured property is called: a. Loss avoidance b. Deductible c. Peril d. Loss exposure In the case of a high number of occurrences of losses but small sizes of damage, the _________ technique shall be used. a. Avoidance b. Retention c. Risk transfer d. Loss prevention
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One of the following is not a positive effect of retention: The correct answer is d. Encouragement of loss prevention. While retention can help lower expenses, increase cashflow, and decrease the risk of losses, it does not necessarily encourage loss prevention. Show more…
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