Jim S. buys a $50,000 car. Rather than buying insurance on the car, he sets aside $30,000 in a savings account to cover possible losses due to an accident. He is:
A) self-insuring
B) a moral hazard
C) assuming risk
D) decreasing his risk of physical loss
C
Business
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Under regular audits and solvency testing an insurer is subject to:
A) no state guaranty fund participation B) more restrictive rate regulation C) the requirement to file an annual statement D) FDIC participation and protection
Business
What is the point at issue between Larisa and Karola?
A) Does the Internet provide accurate and reliable information on investments? B) Should they pay a broker extra to recommend an investment for them? C) Should they invest their money in stocks or bonds? D) Is Merrill Lynch a reliable source of investment advice? E) Will the stock market rise or fall in the next decade?
Business