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Question 10: Which of the following best describes the Insurance Model?A. Before incurring the cost for insuring an inoperative asset, check for maintenance agreements that may
include the cost of
insurance itself.
B. The insurance model is the transference of risk to an insurance company that covers the costs of
replacing the critical assets within
your network. The drawbacks are increase in premiums after making a claim, high premiums anyway,
down time while the
insurance company is processing the claim, and claim may not pay what replacement costs are today.
C. The insurance model makes use of preventive measures and regular service as well as updates such
as
Service Packs, maintenance
updates, and patches. Preventive measures can also improve the chances of the insurance model
working
better than if the system
had no preventive measures ever taken.
D. The insurance model makes use of the acknowledged skills and abilities of the existing personnel.
Knowing that assets have very
specific dollar values assigned to them, the choice on how to manage the asset is based on the
experience
of the personnel.
E. Assets will typically cost much more than the original capital outlay that it took to purchase it long ago.
Insurance costs can be
very high and a decision to exercise this model should not be made in haste. There are also depreciation
issues to deal with as well.
Correct Answer: B
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