Final answer:
d. All the answers are incorrect. Loss prevention aims to reduce severity of loss events but not the probability. Direct losses in a lawsuit include legal costs and settlement expenses, while indirect losses are secondary financial consequences. Auto physical damage insurance is riskier than satellite insurance due to greater variance in profits. All the provided options are incorrect.
Step-by-step explanation:
Loss prevention is a type of loss control activity that aims to reduce expected losses by lowering the severity of the loss event but not the probability. For example, an insurance company might offer lower premiums to a business that installs top-level security and fire sprinkler systems, thereby reducing the potential severity of a fire damage claim.
In a law suit case, the direct losses may include the legal costs and the costs associated with judgments or settlements of claims. These are the immediate financial impact of the lawsuit on the party being sued.
Indirect losses refer to the secondary financial consequences that result from a loss event. For instance, in the context of insurance, indirect losses could be due to additional operating expenses incurred in the aftermath of a loss event, such as the costs of temporary relocation or reconstruction.
Auto physical damage insurance is considered a riskier line of business compared to satellite insurance because the potential losses associated with auto accidents are generally higher and more uncertain, leading to greater variance in an insurer's profits.
All the answers are incorrect as the correct statements have been provided in the previous options.