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Insurance Risk Management Quiz Questions & answers.
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Insurance Risk Management QuizQuestions & answers.
As defined in this course, risk is the probablity or chance of loss? ANS - False
Loss is the undesirable result of risk? ANS - True
Actual losses are much more common than loss exposures? ANS - False
The extra expense a client incurs by living in a hotel after a fire has damaged their home is an example of
a direct loss? ANS - False
Because uncertainty is a state of mind, two clients facing the same risk situation can have varying
degrees of uncertainty? ANS - True
Hazards are causes of loss, such as death, fire or legal liability? ANS - False
Moral hazards are evidenced by carelessness or indifference? ANS - False
Hazards are important in underwriting and rating applicants for insurance? ANS - True
A client can use the probability of a loss to measure the risk he or she faces? ANS - False
Because pure risks involve a possibility of gain as well as loss, they can be handled effectively with
hedging? ANS - False
Risk management is a systematic process for dealing with risks, usually, pure risks? ANS - True
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