Morris Company Self-Insures Its Workers Compensation Loss Exposure

Multiple Choice

Morris Company self-insures its workers compensation loss exposure.The risk manager of Morris Company is concerned about the possible impact of a single catastrophic claim.She decided to set a retention limit of $500,000 per-claim,and to purchase insurance that will be begin to pay once Morris Company has paid $500,000 on a single claim.The insurance the risk manager purchased is called

A) captive insurance.
B) excess insurance.
C) primary insurance.
D) umbrella insurance.