All of the following conditions are suggestive of the types of situations where self-insurance by a business is both possible and feasible except:
A) objects at risk are not subject to simultaneous destruction,
B) the firm must administer the plan with existing, in-house personnel,
C) the firm has accurate records or has access to satisfactory statistics regarding the probability of loss,
D) the firm is in satisfactory financial condition.

Question

Quizplus · Accepted Answer

Self-insurance is feasible when a company can predict potential losses (C), is financially stable (D), and the risk of simultaneous destruction is low (A). The requirement to administer the plan with existing personnel (B) is not a condition that makes self-insurance possible or feasible; rather, it's a logistical consideration.

All of the Following Conditions Are Suggestive of the Types