Which one of the following will be least helpful in offsetting a company's costs from a loss event?
A) Self-insurance pool of cash
B) Insurance policy exclusion
C) Abidance with policy notification provisions
D) Currently paid insurance premiums
E) Low insurance deductible

Question

Quizplus · Accepted Answer

An insurance policy exclusion means that the insurance company is not liable to offer coverage for a particular cause of loss. Hence, it will not be helpful in offsetting the company's costs from a loss event. The other options, such as a self-insurance pool of cash, abidance with policy notification provisions, currently paid insurance premiums, and low insurance deductibles, all help in reducing costs and offsetting them in case of a loss event.

Which One of the Following Will Be Least Helpful in Offsetting