RMIN 4000 Final Exam Questions and Answers | Latest Version | 2024/2025 | Graded A+
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Course
RMIN 4000
Institution
RMIN 4000
RMIN 4000 Final Exam Questions and
Answers | Latest Version | 2024/2025 |
Graded A+
What is risk management?
Risk management involves identifying, assessing, and prioritizing risks followed by
coordinated efforts to minimize, monitor, and control the probability or impact of adverse event...
RMIN 4000 Final Exam Questions and
Answers | Latest Version | 2024/2025 |
Graded A+
What is risk management?
✔✔ Risk management involves identifying, assessing, and prioritizing risks followed by
coordinated efforts to minimize, monitor, and control the probability or impact of adverse events.
What is underwriting in insurance?
✔✔ Underwriting is the process of evaluating the risk of insuring a potential client and
determining the terms and premiums for coverage.
What is a deductible in an insurance policy?
✔✔ A deductible is the amount the insured must pay out-of-pocket before the insurance
company begins to pay for covered losses.
What is moral hazard in the context of insurance?
✔✔ Moral hazard refers to the increase in risk that occurs when the behavior of the insured
changes as a result of having insurance coverage.
1
,What is the purpose of reinsurance?
✔✔ Reinsurance is used to manage risk by allowing insurers to transfer a portion of their risk to
other insurance companies.
What does loss prevention involve?
✔✔ Loss prevention involves measures and strategies designed to reduce the likelihood or
severity of potential losses.
What is a premium in an insurance contract?
✔✔ A premium is the amount of money paid by the insured to the insurer for coverage under an
insurance policy.
What is claims adjustment?
✔✔ Claims adjustment is the process of evaluating and settling insurance claims to determine
the amount payable to the insured.
What does exposure mean in risk management?
✔✔ Exposure refers to the potential for loss or damage that an individual or organization faces
from various risks.
2
, What is moral hazard?
✔✔ Moral hazard occurs when the presence of insurance leads to riskier behavior by the insured
because they do not bear the full cost of their actions.
What is loss control?
✔✔ Loss control involves implementing measures to reduce the frequency or severity of losses
and protect assets.
What is an actuarial table?
✔✔ An actuarial table is a chart used by insurers to estimate the probability of certain events
occurring and the financial impact of those events.
What does risk retention mean?
✔✔ Risk retention involves accepting the risk and bearing the cost of potential losses instead of
transferring the risk through insurance.
What is a coverage limit in an insurance policy?
3
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