Which of the following types of loss exposures are best handled by the use of avoidance?
A)low-frequency,low-severity
B)low-frequency,high-severity
C)high-frequency,low-severity
D)high-frequency,high-severity

Question

Quizplus · Accepted Answer

Avoidance is best for high-frequency, high-severity loss exposures because these can lead to significant financial damage and are difficult to manage through other risk management techniques.

Which of the Following Types of Loss Exposures Are Best