CAIB 1 2023 Exam (Questions with 100% accurate answers)

Insurers are in the business of assuming the financial risks of others which involves entering into a formal contract. A contract is enforceable at law only when all legal elements have been observed. Insurance contracts differ from other formal agreements and are subject to what three additional el...

Define "Risk" correct answers The chance of a financial loss to which the object of insurance may be exposed to List 3 Categories of Risk correct answers 1) Personal 2) Property 3) Liability List 4 Types of Risk Management Techniques correct answers 1) Risk Avoidance 2) Risk Retention 3) Ris...

Transfer of risk - buy insurance Avoidance of risk - avoid the chance of financial loss Controlling of rish - taking measures to reduce the frequency and securitu of loss Retention of risk - when a company decides to finance their own losses correct answers People can choose to deal with r...

Consideration is... a. The law of insurance b. A promise between parties c. A contract's binding force d. An exchange of something of value correct answers d. An exchange of something of value A stock company is... a. A company that invests in other companies b. A company owned by ...

Provide 1 reason why persons should not rely on control of risk as a total solution in eliminating financial loss correct answers -Equipment will not work 100% of the time -certain types of losses such as wind, hail and lightning cannot be effectively controlled People can choose to deal with ri...

Define in pure insurance terms "risk." correct answers The chance of financial loss to which an object of insurance is exposed. List the three categories of risk generally faced by people. correct answers Personal - loss of health/life Property - objects Liability - negligent actions result i...

Risk correct answers The chance of financial loss to which an object of insurance is exposed. List the 3 categories of risk generally faced by people. correct answers Personal, Property and Liability State four possible options people can choose to deal with risk. (explain) correct answers Avo...

Identify 4 possible options to deal with Risk , describe each correct answers Control the Risk ( loss control measures) Avoid the Risk ( rent Rather than buy ) Retain the risk ( self insurance or share risk through deductibles) Transfer the Risk ( purchase insurance ) Out of the 4 means of man...