AIBC 0123 Questions and Answers
Rated A+
What is the primary purpose of insurance in business?
The primary purpose of insurance in business is to mitigate financial risks and protect against
potential losses.
How does risk management play a role in business insurance?
Risk management in...
AIBC 0123 Questions and Answers
Rated A+
What is the primary purpose of insurance in business?
✔✔The primary purpose of insurance in business is to mitigate financial risks and protect against
potential losses.
How does risk management play a role in business insurance?
✔✔Risk management involves identifying, assessing, and prioritizing risks to minimize their
impact on the business.
What is the difference between liability insurance and property insurance?
✔✔Liability insurance protects against claims for damages or injuries caused to others, while
property insurance covers damage to the business’s physical assets.
What is the significance of an insurance policy’s deductible?
✔✔The deductible is the amount the policyholder must pay out of pocket before the insurance
coverage kicks in.
1
, How does an underwriter determine insurance premiums?
✔✔Underwriters assess various factors, such as risk exposure and claims history, to determine
appropriate insurance premiums.
What role does a broker play in the insurance process?
✔✔A broker acts as an intermediary between the client and insurance companies, helping to find
suitable coverage options.
What is the concept of risk pooling in insurance?
✔✔Risk pooling involves combining the risks of multiple policyholders to spread the financial
burden of claims.
What are some common types of business insurance coverage?
✔✔Common types include general liability, property insurance, workers’ compensation, and
professional liability.
How does the claims process work in business insurance?
✔✔The claims process typically involves reporting the incident, providing documentation, and
working with the insurer to settle the claim.
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