Intentional and non intentional retentions?..explain pls?
Answers: As it relates to risk management an intentional retention is where a company decide to retain a part of the risk by purchasing insurance coverage with a deductible.
A non-intentional retention would be where on earth a hazard is not recognized to exist and so no insurance is purchased. If you suffer a loss because you didn't think an earthquake was possible contained by southern Illinois you have a non-intentional retention.
Another non-intentional retention would be purchasing insurance where the insurance company subsequently becomes insolvent and is unable to come together its obligation.