In context of insurance, ‘risk retention’ indicates a situation where

A. Possibility of loss or damage is not there

B. Loss producing event has no value

C. Property is covered by insurance

D. One decides to bear the risk and its effects

Answer: Option D

Solution(By Examveda Team)

Risk retention is a situation where one decides to bear the risk and its effects. Risk retention is a company's decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company. Companies often retain risks when they believe that the cost of doing so is less then the cost of fully or partially insuring against it.

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