ERM Ch 4 Test 2 Practice Questions & Answers 2024/2025
8 views 0 purchase
Course
ERM Ch 4
Institution
ERM Ch 4
ERM Ch 4 Test 2 Practice Questions & Answers 2024/2025
Hold-harmless agreements are
Select one:
A. Comprised of two parties—the indemnitor and the indemnitee.
B. Enforceable without legal consideration.
C. Highly regulated.
D. Standardized. - ANSWERSA. Comprised of two parties—the ind...
ERM Ch 4 Test 2 Practice Questions &
Answers 2024/2025
Hold-harmless agreements are
Select one:
A. Comprised of two parties—the indemnitor and the indemnitee.
B. Enforceable without legal consideration.
C. Highly regulated.
D. Standardized. - ANSWERSA. Comprised of two parties—the indemnitor and the indemnitee.
Internet of Things (IoT) devices, sensors, wearables, and telematics devices have had the greatest impact
on which one of the following risk treatment techniques?
Select one:
A. Risk transfer
B. Risk avoidance
C. Risk modification
D. Risk retention - ANSWERSC. Risk modification
Which one of the following is a risk control technique that reduces the frequency of a particular loss?
Select one:
A. Loss prevention
B. Duplication
C. Loss reduction
D. Separation - ANSWERSA. Loss prevention
Which one of the following statements is correct regarding characteristics of ideally insurable loss
exposures?
Select one:
, A. A common function that insurance provides is a spreading of risk across a large number of similar
exposure units within the same period.
B. Intertemporal risk transfer, the spreading of risk through time, requires a large number of similar
exposure units.
C. One requirement of the law of large numbers is that past events occur under different circumstances
in the future.
D. Loss exposures such as homes and automobiles generally will not meet the ideally insurable
requirement that the exposure be of a large number of similar exposure units. - ANSWERSA. A common
function that insurance provides is a spreading of risk across a large number of similar exposure units
within the same period.
Telematics devices allow organizations to accurately identify patterns of risk and predict risk for which
one of the following types of loss exposures?
Select one:
A. Workers compensation
B. Property
C. Automobile
D. Business income - ANSWERSC. Automobile
Statutory limitations on hold-harmless agreements vary in the
Select one:
A. Allowable complexity of the agreement.
B. Length of time that such transfers can be effective.
C. Types of noninsurance transfers to which the statutes apply.
D. Cost or compensation associated with the agreement. - ANSWERSC. Types of noninsurance transfers
to which the statutes apply.
A large deductible is similar to a self-insured retention (SIR) in that both
Select one:
A. Provide detailed reports to the insurer on all claims.
B. Give the insurer complete control over claim handling.
C. Require that the insured adjust and pay claims up to the deductible or SIR amount.
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
