Colin is attending the first class in his insurance course. The topic being discussed is risk — identifying it as well as strategies on how to handle it. The professor notes that while some people would like to practice risk avoidance, this strategy is not always practical. For example, in many locations, the risks associated with driving a car cannot be avoided — given the geographic size of a particular city, or the absence of available, rapid, convenient, cost-effective alternatives to a personal vehicle, etc. In these
(and similar) situations, the benefits of many activities outweigh the cost of avoiding them. In these situations, insurance is a sensible way of handling risk when people effectively use what measures?