Rmi 211 - Study guides, Class notes & Summaries

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 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....

sources of information for identifying loss exposures - - risk analysis questionnaires - physical inspection - flow charts - financial statements - historical loss data (most common) What is Risk? - Uncertainty regarding loss Objective Risk - the relative variation of actual loss from expected loss subjective probability - - personal estimate of the chance of loss - it need not coincide with objective probability and is influenced by a variety of factors including age, sex, intelligence...

Which of the following is a common dividend option found in a participating life insurance policy? - paid-up additions Which of the following is a permissible IRA investment alternative? - Mutual funds Becky is considering the purchase of a whole life policy on her own life. She is concerned that if she becomes disabled, paying premiums will become a burden. Which provision can Becky attach to her life insurance policy to address this concern? - waiver-of-premium provision Brad owns a cash...

All of the following statements about the income tax treatment of individually purchased life insurance are true EXCEPT: Policy owner dividends are received tax-free. Life insurance proceeds paid to a beneficiary in a lump-sum are received tax-free. The annual increase in cash value is not taxable while the policy remains in force. Premiums paid for individual life insurance are a tax deductible expense. - Premiums paid for individual life insurance are a tax deductible expense. A conting...

the probability that an event will occur; can be same for two outcomes but may have different objective risks - Chance of loss characterizes the relationship between two or more variables and then uses this characterization to predict values of a variable - regression analysis uncertainty concerning the occurrence of a loss - Risk the property or life that is being considered for insurance - Insurance form of risk any situation or circumstance in which a loss is possible, regardless of whe...

refers to the long-run relative frequency of an event based on the assumptions of an infinite number of observations and of no change in the underlying conditions - Objective Probability a method other than insurance by which a pure risk and its potential financial consequences are transferred to another - Non-insurable transfer a specified amount subtracted from the loss payment otherwise payable to the insured - Deductable Uncertainty concerning the occurrence of an event (usually a loss...

RMI 211 Mock Test Complete Guide 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? - A) I only (Speculative risk) - B) II only (Diversifiable risk) - C) Both I and II - D) Neither I nor II Answer: B) II only 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 Answer:...

RMI 211 EXAM 1 - Meek Risk️ The uncertainty associated with the possibility of a loss occurring. Insurance Form of Risk️ The property or life that is subject to consideration for insurance coverage. Loss Exposure️ Any scenario or situation where there is a potential for a loss, regardless of whether it ultimately occurs. Objective Risk️ The degree of variability between actual losses and expected losses. Subjective (Perceived) Risk️ The uncertainty stemming from an individu...

RMI 211 EXAM 1 - Meek RMI 211 EXAM 1 - Meek RMI 211 EXAM 1 - Meek