Question
A type of insurance often used for high frequency low
severity risks where risk is not transferred to an insurance company but retained and accounted for internally is known as?Solution
Self-insure is a risk management technique in which a company or individual sets aside a pool of money to be used to remedy an unexpected loss. Theoretically, one can self-insure against any type of loss. In practice, however, most people choose to purchase insurance against potentially large, infrequent losses.
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