What is the purpose of self-insurance?
A) Eliminate the risk
B) Provide a means for covering losses
C) Create high insurance costs
D) Develop a new policy to be purchased by the insured

Question

Quizplus · Accepted Answer

The purpose of self-insurance is to provide a means for covering losses. Instead of relying on a traditional insurance policy, the insured sets aside funds to cover potential losses. This can be more cost-effective in the long run, as it avoids high insurance costs and allows the insured to have more control over their coverage. However, self-insurance does not completely eliminate the risk of loss.

What Is the Purpose of Self-Insurance