Which of the following actions typically exemplifies self-insurance?

Self-insurance involves a strategy where individuals or businesses take on the financial risk associated with certain losses rather than transferring that risk to an insurance company. The concept of planned assumption of risk aligns with self-insurance because it means that the entity has evaluated its potential risks and made a conscious decision to absorb those risks instead of purchasing an insurance policy.

This approach might include setting aside funds to cover potential losses that might occur, thus providing a financial safeguard that can be more cost-effective compared to paying premiums for insurance coverage. The key element is the intent and planning involved in managing risk, rather than merely avoiding insurance altogether or shifting all responsibility to another party.

In contrast to this, transferring all risks to another entity relates to purchasing insurance, where the risk is offloaded completely. Regularly changing insurance providers does not embody self-insurance; it indicates a behavior of continuously seeking coverage rather than managing risks independently. Lastly, refusing to insure against any losses suggests a complete denial of risk management altogether, rather than a structured approach to self-insuring. This highlights why the planned assumption of risk is the action that exemplifies self-insurance.