Which of the following statements regarding the use of retention is (a

Which of the following statements regarding the use of retention is (are) true?

I. Retention is best used for loss exposures that have a low frequency and a high severity.
II. A financially strong firm can have a higher retention level than a firm whose financial position is weak.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: B