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Zorluk: ZorMethods of Handling Risk

After experiencing a close call in traffic, Jonathan decides to sell his motorcycle and commute exclusively by public transit to eliminate his exposure to motorcycle accidents. To manage his general health risks, he purchases a major medical insurance policy. However, to keep his premium costs manageable, he selects a policy with a $5,000 deductible and actively maintains a dedicated savings account to cover this initial amount in the event of a severe illness. Based on insurance principles, which of the following accurately classifies Jonathan's risk management strategies?

  1. Selling the motorcycle represents risk avoidance, purchasing the medical policy represents risk transfer, and funding the savings account for the deductible represents risk retention.Cevap
  2. B
    Selling the motorcycle represents risk reduction, purchasing the medical policy represents risk transfer, and funding the savings account for the deductible represents risk retention.
  3. C
    Selling the motorcycle represents risk avoidance, purchasing the medical policy represents risk sharing, and funding the savings account for the deductible represents risk transfer.
  4. D
    Selling the motorcycle represents risk reduction, purchasing the medical policy represents risk transfer, and funding the savings account for the deductible represents risk sharing.

Cevap

Selling the motorcycle represents risk avoidance, purchasing the medical policy represents risk transfer, and funding the savings account for the deductible represents risk retention.
Risk avoidance completely eliminates an exposure, which is achieved by selling the motorcycle. Risk transfer shifts the financial consequence of a loss to another party, which occurs when purchasing the policy. Risk retention is the assumption of risk by the individual, which is demonstrated by using personal savings to pay the $5,000 deductible.

Adım Adım Çözüm

1
Analyze the decision to sell the motorcycle.
Jonathan completely eliminates his exposure to motorcycle accidents. This aligns with the definition of Risk Avoidance.
Avoidance involves steering clear of an activity entirely so that the specific risk ceases to exist.
2
Analyze the purchase of the major medical insurance policy.
Jonathan shifts the potential financial burden of catastrophic health losses to an insurance company. This aligns with the definition of Risk Transfer.
Transfer involves moving the financial consequences of a loss to a third party, which is the primary function of insurance.
3
Analyze the use of a savings account to fund the $5,000 deductible.
Jonathan assumes the financial responsibility for the first $5,000 of any medical loss. This aligns with the definition of Risk Retention.
Retention (or self-insurance) means the individual absorbs a portion of the financial loss themselves, which is exactly how a deductible functions.

Anahtar Kavram

Methods of Handling Risk (STARR: Sharing, Transfer, Avoidance, Reduction, Retention)
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Konular

Methods of Handling Risk

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