Which of the following statements is FALSE?

For insurers, studying the hazards that cause insured perils is crucial because it allows them to price insurance premiums accordingly.

Certain types of business organizational forms, such as self proprietorship, are best avoided to protect the personal assets of a business owner from potential lawsuit claims.

Captive insurance companies offer tax advantages because firms may claim higher loss expenses relative to premiums paid to insurance companies.

Relative to self-insurance, risk retention involves a more careful analysis of a firm's historical losses and setting aside reserve funds for risk financing.