Mark cpcu 500 ch 4 Study guides, Class notes & Summaries

1-1. Describe the expenses that constitute an organization's cost of risk regardless of whether losses are retained or transferred. - These expenses form part of the cost of risk regardless of whether losses are retained or transferred: - Administrative expenses: include the cost of internal administration and the cost of purchased services, such as claim administration or risk management consulting - Risk control expenses: incurred to reduce frequency, reduce the severity of losses tha...