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Many companies self-insure against some risk.

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Many companies self-insure against some risk. Problems which can arise from self-insurance include:

A.

confusion of business risks with insurable risks.

B.

Both 1) failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company, and 2) confusion of business risks with insurable risks.stiff competition from insurance companies

C.

All of the other alternatives apply.

D.

failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company

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