Ace the 2025 Life & Health Insurance Exam – Insure Your Success Today!

Risk avoidance is a strategy employed to eliminate the potential for loss or injury by opting out of any activities that create such risks. The act of refusing to fly on commercial airplanes exemplifies this approach perfectly. By choosing not to fly, an individual completely removes the exposure to the risks associated with air travel, such as accidents or turbulence.

In contrast, the other options demonstrate different risk management strategies. Cancelling an event due to bad weather involves mitigating risks but does not eliminate future weather-related risks entirely; it only addresses the current situation. Buying insurance for your property relates to risk transfer, where the financial burden of a potential loss is shifted to the insurance company rather than removed altogether. Investing in safety measures is a form of risk reduction, aiming to lessen the likelihood or impact of a risk without avoiding it completely.