Question

What decision did British Petroleum make regarding insurance coverage?

a.

They opted for captives instead of traditional insurance.

b.

They increased their premium payments to US $125 million.

c.

They withdrew from the world energy market.

d.

They limited their insurance coverage to US $10 million for legal compliance.

Answer: (d).They limited their insurance coverage to US $10 million for legal compliance. Explanation:British Petroleum decided to limit their insurance coverage to a maximum of US $10 million, fulfilling only their legal compliance requirements. This significantly reduced the premium amount paid by British Petroleum and impacted the world energy market by withdrawing a large premium amount.

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Q. What decision did British Petroleum make regarding insurance coverage?

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