Derek purchased a life insurance policy and a long-term care insurance policy, what risk management strategy...

Derek purchased a life insurance policy and a long-term care insurance policy, what risk management strategy does he use?

A. Risk transfer

B. Risk avoidance

C. Risk reduction

D. Risk retention

Solutions

Expert Solution

Option A is correct

Risk Transfer

Explanation:

In life insurance, risk is transferred from individuals to insurance companies, by insurance policy.

jeff jeffy answered 1 year ago

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