RMI 211 Mock Test Questions and Answers
B - Answer️️ -1) A family's automobile that is a total loss as a result of a
collision is an example of which of the following types of risk?
I. Speculative risk
II. Diversifiable risk
A) I only
B) II only
C) both I and II
D) neither I nor II
B -...
A - Answer✔️✔️-6) An insurance company estimates its objective risk for
10,000 exposures to be 10 percent. Assuming the probability of loss remains
the same, what would happen to the objective risk if the number of
exposures were to increase to 1 million?
A) It would decrease to 1 percent.
B) It would decrease to 5 percent.
C) It would remain the same.
D) It would increase to 20 percent.
C - Answer✔️✔️-7) Which of the following statements is true regarding
careers in risk management and insurance going forward?
A) Employment opportunities in insurance will be limited to sales and
claims.
B) Reduced consumer demand for insurance products will create
significant job losses in the industry.
C) Many job opportunities will be available requiring a wide range of
knowledge and skills.
D) A government takeover of the insurance industry is predicted, reducing
the number of private sector jobs.
B - Answer✔️✔️-8) Janice mistakenly thought that Medicare covers the cost
of a long-term care in a nursing home. So she did not purchase long-term
3
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