All of the following statements about risk retention are true EXCEPT

Selected answer will be automatically saved. For keyboard navigation, press up$/$down arrow keys to select an answer.

a

It may be used intentionally if commercial insurance is unavailable.

b

It may be used passively because of ignorance.

c

Its use is most appropriate for low$-$frequency, high$-$severity types of risks.

d

Its use results in cost savings if losses are less than the cost of insurance.