Which of the following is typically not covered under self-insurance arrangements?

Which of the following is typically not covered under self-insurance arrangements?

• A. Liability Inventories
• B. High-Risk Claims
• C. Administrative Costs
• D. Allure of Accessory Coverage

Answer: (D)

Self-insurance arrangements typically involve an organization setting aside funds to cover potential losses rather than purchasing traditional insurance. Under these arrangements, most types of risks are generally covered, including liabilities and certain administrative costs associated with managing those risks. However, "Allure of Accessory Coverage" is typically not covered under self-insurance. Accessory coverage often refers to additional coverages that come with standard insurance policies but may extend beyond the core needs of an organization in a self-insured arrangement. Self-insurance focuses on anticipated losses which are either predictable or manageable, while accessory coverage may include bells and whistles that are not necessary for the primary protection of the asset or activity. Since the purpose of self-insurance is to cover essential risks with managed costs, supplemental or non-essential coverage often does not fit within this model.

Self-insurance arrangements typically involve an organization setting aside funds to cover potential losses rather than purchasing traditional insurance. Under these arrangements, most types of risks are generally covered, including liabilities and certain administrative costs associated with managing those risks.

However, "Allure of Accessory Coverage" is typically not covered under self-insurance. Accessory coverage often refers to additional coverages that come with standard insurance policies but may extend beyond the core needs of an organization in a self-insured arrangement. Self-insurance focuses on anticipated losses which are either predictable or manageable, while accessory coverage may include bells and whistles that are not necessary for the primary protection of the asset or activity. Since the purpose of self-insurance is to cover essential risks with managed costs, supplemental or non-essential coverage often does not fit within this model.