Question

which of the following best describes risk retention? 1 poin buying insurance ignoring risk accepting the financial consequences of loss eliminating risk clear selection fiduciary : 1 point a person who pays premiums a person who grants financial trust a person in position of financial trust none of the above activities such as scuba diving which increases the chance of a loss 1 point occurring is called a peril pure risk hazard

Explanation:

1. For risk retention: This is a risk management strategy where an entity accepts potential financial losses from a risk rather than transferring or avoiding it. Buying insurance is risk transfer, ignoring risk is not intentional retention, and eliminating risk is risk avoidance.
2. For fiduciary: A fiduciary is a person who holds a position of financial trust, obligated to act in another party's best financial interest. A premium payer is an insured, and the one granting trust is the principal/beneficiary.
3. For the scuba diving question: A hazard is a condition or activity that increases the likelihood or severity of a loss. A peril is the actual cause of loss, and pure risk is a type of risk with only loss or no loss outcomes.

Answer:

1. accepting the financial consequences of loss
2. A person in position of financial trust
3. hazard