General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insured installs grab bars and non-slip flooring in the home after a recent fall and begins a supervised exercise program to strengthen balance. These actions are an example of:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Loss reduction (also called loss control) takes steps to lower either the frequency or the severity of losses. Installing safety devices and strengthening balance reduce the likelihood of falls and the severity of injuries that do occur, without eliminating the exposure entirely. It is distinct from avoidance (removing the exposure), transfer (shifting the cost to another party), and retention (bearing the loss personally).
Why the other options are wrong
- B) Avoidance means eliminating the exposure completely, such as never walking on stairs; these measures reduce risk but do not remove it.
- C) Transfer shifts the financial burden of loss to another party such as an insurer; safety measures do not shift any cost.
- D) Retention means deliberately bearing the loss; taking precautions reduces the risk instead of accepting it.
Memory hook
Loss reduction = shrink the odds or the damage. Grab bars do not erase the risk, they shrink it.