Question

insurance provides a means to
a. eliminate a loss.
b. retain a loss.
c. avoid a loss.
d. transfer a loss.

Explanation:

Insurance is a risk - management tool. It does not eliminate (A) the risk (loss may still occur), nor does it retain (B) the risk (the insured is not bearing the full cost). Avoiding (C) a loss is a different risk - management strategy (like not engaging in an activity that could cause loss). Insurance transfers (D) the financial impact of a potential loss from the insured to the insurer.

Answer:

D. Transfer a loss.