Definition of "Passive retention"

Barbara Anne  Kivi real estate agent

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Barbara Anne Kivielite badge icon

Keller Williams Realty NY

Practice in which no funds are set aside on a mathematical basis to pay for expected losses. This occurs when a risk manager is not aware of an exposure, when the cost of treating an exposure positively is prohibitive, or if the severity of a loss (should it occur) would be inconsequential.

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