100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
RMIN 4000 Exam 1 Brown Questions and Answers. $11.49   Add to cart

Exam (elaborations)

RMIN 4000 Exam 1 Brown Questions and Answers.

 2 views  0 purchase
  • Course
  • RMIN 4000
  • Institution
  • RMIN 4000

RMIN 4000 Exam 1 Brown Questions and Answers.

Preview 2 out of 14  pages

  • October 31, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • RMIN 4000
  • RMIN 4000
avatar-seller
Wisdoms
RMIN 4000 Exam 1 Brown Questions and
Answers



Textbook definition of RISK - (correct answer) -Uncertainty concerning the occurrence of a loss
io io io io io io io io io io io io io




Better definition of RISK - (correct answer) -A calculated possibility of a negative outcome
io io io io io io io io io io io io io




Calculated Possibility - (correct answer) -0 = Impossible event (NO RISK)
io io io io io io io io io io




0.5 = Highest Risk (Most Uncertainty)
io io io io io




1 = 100% Certain Event (NO RISK
io io io io io io




Negative Outcome - (correct answer) -Loss
io io io io io




Losses must be __________? - (correct answer) -Quantifiable
io io io io io io io




Pure Risk States - (correct answer) -Loss
io io io io io io




or



No Loss
io




Examples of Pure Risks - (correct answer) -Fire, Cancer, Dog bites a visitor
io io io io io io io io io io io io




Speculative Risk States - (correct answer) -Loss
io io io io io io




No Loss/No Gain
io io

, Gain

Examples of speculative risks - (correct answer) -Investment, Gambling, Drinking
io io io io io io io io io




Frequency answers what question? - (correct answer) -How often does a loss occur
io io io io io io io io io io io io




The number of losses that occur in a specified time period
io io io io io io io io io io




Probability of a loss - (correct answer) -Frequency io io io io io io io




Severity answers what question? - (correct answer) -How much does it cost when a loss does occur?
io io io io io io io io io io io io io io io io




The dollar amount for a loss of a specific peril
io io io io io io io io io




Peril - (correct answer) -Cause of a loss
io io io io io io io




Hazard - (correct answer) -Condition that creates or increases the frequency and/or severity of a loss
io io io io io io io io io io io io io io io




DOES NOT CAUSE A LOSS io io io io




Examples of Peril - (correct answer) -Fire, Tornado, Collision, Burglary
io io io io io io io io io




Types of Hazard - (correct answer) -Physical
io io io io io io




Moral

Morale (Attitudinal) io




Legal

Physical Hazard - (correct answer) -A physical condition that increases the frequency and/or severity of
io io io io io io io io io io io io io io




a loss
io io




Book Definition of Moral Hazard - (correct answer) -Dishonesty or character defects in an individual
io io io io io io io io io io io io io io




that increase the frequency and/or severity of a loss
io io io io io io io io io




Better Definition of Moral Hazard - (correct answer) -The presence of insurance changes the behavior
io io io io io io io io io io io io io io




of the insured
io io io




Examples of Moral Hazard - (correct answer) -Using a hammer to create "hail" damage to a roof
io io io io io io io io io io io io io io io io




Exaggerating the value of insured property io io io io io

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Wisdoms. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$11.49
  • (0)
  Add to cart