Exam (elaborations)
RMI 211 Mock Test Questions And Answers Latest Update
- Course
- RMI 211
- Institution
- Missouri State University
RMI 211 Mock Test Questions And Answers Latest Update
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RMI 211 Mock Test 2024-2025 QuestionsAnd Answers Latest Update
B - 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
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,B) II only
C) both I and II
D) neither I nor II
B - 2) All of the following are programs to insure nondiversifiable risks EXCEPT
A) federal flood insurance.
B) auto physical damage insurance.
C) Social Security.
D) unemployment insurance.
B - 3) Which of the following statements about chance of loss and risk is (are)
true?
I. If the chance of loss is identical for two groups, the objective risk must be the
same.
II. Two individuals may perceive differently the risk inherent in a given activity.
A) I only
B) II only
C) both I and II
D) neither I nor II
A - 4) A risk that affects only individuals or small groups and not the entire
economy is called a
A) diversifiable risk.
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, B) pure risk.
C) speculative risk.
D) nondiversifiable risk.
B - 5) Objective risk is defined as
A) the probability of loss.
B) the relative variation of actual loss from expected loss.
C) uncertainty based on a person's mental condition or state of mind.
D) the cause of loss.
A - 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 - 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.
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