California Insurance License Exam Practice Test Practice Question
All of the following describe examples of risk avoidance EXCEPT the insured
Correct Answer: A
Rationale: Option A illustrates a response to perceived risk by increasing liability limits, rather than avoiding the risk itself. This approach acknowledges the risk but does not eliminate exposure.
Option B demonstrates risk avoidance by proactively removing a potential danger (the tiger) from the environment, effectively reducing the risk of a lawsuit.
Option C exemplifies risk avoidance through extreme measures, as staying indoors eliminates exposure to nighttime dangers.
Option D also reflects risk avoidance, as refraining from flying entirely removes the associated risks of air travel.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now