Purchasing auto insurance with a $500 deductible is an example

Question

A. Risk transfer to an insurance company.
B. risk reduction of $500.
C. risk assumption of $500.
D. risk transfer to and insurance company and risk reduction of $500.
E. risk assumption of $500 and risk transfer to an insurance company

Answer 1

Answer: D. risk transfer to and insurance company and risk reduction of $500.