Self-Insurance - correct answer -the retention of risk by providing funding for smaller, specified loss from within company reserves



retaining risk is only used in circumstances where a large enough group of similar (homogeneous) exposure units exist, and the business has the necessary amount of capital available on reserve to cover the potential loss



Reciprocals

(Inter-insurance) - correct answer -a type of risk retention between members, known as subscribers, consisting of individual bu...
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