Exam (elaborations)
RMI 211 Exam Questions And Answers Latest Update
- Course
- RMI 211
- Institution
- Missouri State University
RMI 211 Exam Questions And Answers Latest Update
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RMI 211: Exam 1 2024-2025 QuestionsAnd Answers Latest Update
What is Risk Control and give an example.
Refers to techniques that reduce the frequency or severityof losses, an example
wold be avoidance
Loss Prevention
reduce frequency of loss
Loss Reduction
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, Risk Financing
techniques that provide for the funding of losses
What is retention and give an example
Individual or firm retains part of the loss, such as a deductible
What is transfer and give an example
Pass along loss to a 3rd party, such as insurance company.
What are the basic characteristics of insurance?
1. Pooling of losses
2. Payment of fortuitous losses
3. Risk transfer
4. Indemnification
What are some requirements of an ideally Insurable risk?
1. Large number of units - greater number of insured
2. Accidental loss -not arson or suicide
3. Determinable and measurable loss-when loss occurs and now much
4. Non catastrophic loss- hurricane, flood
5.Calculable chance of loss- probability
6. Economically feasible premium-affordable
What is risk?
Uncertainty of loss
Objective Risk
the relative variation of actual loss from expected loss and can be measured
Subjective Risk
uncertainty based on a person's mental condition or state of mind and is difficult
to measure
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