Insurance and Risk Management Questions and Answers Part-3

1. The Insurance is a ______________
a) Contract
b) Uncertainty
c) Peril
d) Hazard

Answer: a

2. Losses arising due to a risk exposure retained or assured is known as ______________
a) Risk Reduction
b) Risk Financing
c) Risk Retention
d) Risk Sharing

Answer: c

3. An alternative approach to the check list is ______________
a) Threat Analysis
b) Event Analysis
c) Operability Study
d) Minimum Level Analysis

Answer: a

4. The measures aimed at avoiding,eliminating or reducing the chances of loss production is covered by ______________
a) Risk Control
b) Risk Retention
c) Risk Avoidance
d) Risk Financing

Answer: a

5. Insurance is best suited to risk with ______________
a) high frequency and low loss severity
b) low frequency and high loss severity.
c) minimum frequency and no loss severity
d) high frequency and high loss severity.

Answer: b

6. The risk manager maybe able to identify the new ventures involved in ______________.
a) Pure risk.
b) Group Risk.
c) Speculative risk
d) Particular risk.

Answer: a

7. An instrument by which a pure risk is transferred by a party other than insurer is
a) Insurance
b) Retention.
c) Non Insurance Transfer.
d) Reinsurance

Answer: c

8. The Person whose risk is insured is called ______________.
a) Insured
b) merchandiser
c) marketer
d) Agents

Answer: a

9. . That which is designed to improve the information on which decisions are take to reduce risk is ______________.
a) Transfer
b) Research
c) Costs.
d) Deflation

Answer: b

10. Uncertain events are broadly classified as ______________.
a) Predictable and Unpredictable
b) Possible and Impossible
c) Natural and Artificial.
d) Rare and Continuous

Answer: a