Definition of "Passive retention"

Cherry-Ann Bryant &  <br>Kathy Kveberg real estate agent
Cherry-Ann Bryant &
Kathy Kveberg, Real Estate Agent
Florida Realty Investments

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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