Risk assumption involves?

Risk assumption involves?

• A. Transferring risk to insurer
• B. Avoiding all risk
• C. Retaining entire risk and paying any expenses incurred from it
• D. Sharing risk with others

Answer: (C)

Risk assumption is when you choose to bear the financial impact of a risk yourself rather than transferring or sharing it with others. In health insurance terms, this means retaining the entire risk and paying any expenses incurred from it. This is different from transferring risk to an insurer (buying insurance), avoiding risk (eliminating exposure), or sharing risk with others (risk pooling). So the statement that best fits risk assumption is keeping the risk and paying the costs yourself, such as paying deductible and out-of-pocket expenses.

Risk assumption is when you choose to bear the financial impact of a risk yourself rather than transferring or sharing it with others. In health insurance terms, this means retaining the entire risk and paying any expenses incurred from it. This is different from transferring risk to an insurer (buying insurance), avoiding risk (eliminating exposure), or sharing risk with others (risk pooling). So the statement that best fits risk assumption is keeping the risk and paying the costs yourself, such as paying deductible and out-of-pocket expenses.