1. The possibility that actual results may differ from predicted results is known as ______________.
a) Risk.
b) Uncertainty.
c) Peril.
d) Hazards.
2. The success of whole process of risk management depends on its ______________.
a) Identification
b) Risk analysis
c) Assessment of risk
d) Evaluation of risk
3. . That which covers the cost of self insurance, loading in insurance premiums and enforcing hedging
arrangements is ______________.
a) Cost of Loss Financing
b) Cost of Control of loss
c) Cost of Residual Uncertainty
d) Cost of Internal Risk Reduction
4. If RMIS has poor system documentation then the remedy is to provide ______________.
a) solid vendor account team
b) internal access to system expert
c) assessment in proper manner
d) clear and comprehensive specifications
5. The risk management can be done by ______________.
a) Insurance
b) Hedging
c) Derivatives
d) All of the above
6. The installation of heat or smoke activated sprinkler systems that are designed to minimize fire
damage in the outbreak of a fire is an example of ______________
a) Loss prevention
b) Loss reduction
c) Hedging
d) Insurance
7. ______________ is the extra payment done for administrative and capital cost.
a) Premium
b) Premium loading
c) Interest
d) Contingency
8. Transfer of rights and remedies of the insured to the insurer after indemnity has been effected is
called ______________.
a) Insurable interest
b) Subrogation
c) Proximate clause
d) Money back policy
9. The principle of indemnity is applicable to ______________ only
a) Life Insurance
b) Personal accident insurance
c) Proximate Cause
d) Property insurance
10. ______________ is those terms, which are implied in every contract of marine insurance unless they
are expressly excluded.
a) Guarantee
b) Express Warranties
c) Implied Warranties
d) Waiver Clause