Insurance exam
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
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| show | this is the answer
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| show | Risk is the possibility of loss. Uncertainty is the state of mind of being unsure. As a consequence, uncertainty can vary significantly from one person to another, even when each is confronted with the same facts, the samr reality, or the same risk.
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| Your client owns a printing business but rents the premises where the business is conducted. What direct and indirect losses might a fire cause to Jim's business? | show 🗑
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| Sally, a single mother with 2 kids, learned that her stress at work is giving her high blood pressure. She is worried that if she were to die, her kids would no have her income to support themselves. What is an example of risk, peril, and hazard? | show 🗑
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| show | A. physical hazard
B. attitudinal hazard
C. moral hazard
c. moral hazard.
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| show | Although the probability is low, she is only one person, and knowledge of the probability is no help in measuring the risk (the possibility of loss) that she alone faces. Low probability and high severity (single mom) is where insurance works best.
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| How would you respond to the following? If life insurance companies can use probabilities to determine the likelyhood that a woman aged 29 will die, why can't I use them to determine the likelihood that I will die? | show 🗑
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| show | Particular risks are loss possibilities that affect only individuals or small groups at the same time, rather than a large segment of society. Fundamental risks, are loss possibilities that can affect large segments of society at the same time.
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| show | Home ownership can give rise to pure risk by providing a possibility of loss from fire, windstorm, theft, and many other property related perils as well as from legal liability (for example, the possibility of someone falling down your shaky stairs)
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| show | Home ownership can give rise to speculative risk by providing a possibility of a gain or a loss when the home is sold.
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| show | Insurance is concerned mainly with the economic problems created by pure risks where there is only the potential for loss or no loss.
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| show | Risks involving the person; risks involving loss of or damage to property, and risks involving liability for injury or damage to persons or the property of others.
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| show | Gambling creates risk, while insurance transfers or reduces a risk that already exists.
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| show | The amount of loss must be important.
The loss must be of an accidental nature.
Future losses must be calculable.
The loss must be definite.
the loss cannot be excessively catastrophic.
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| show | Most people are more risk averse than risk tolerant. The way in which risk is conveyed influences perception.
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| How do emotions play into insurance? | show 🗑
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| show | People tend to overestimate low-probability risks and underestimate higher probability risks. Most people have a greater fear of risks with which they are inexperienced than those with which they are familiar.
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| show | Pure risks are damaging because their is no offsetting gain such as with speculative risks. There are also indirect losses such as productivity and profits.
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| show | 1) fear and worry 2) inadequate preparation 3) expenses of managing risks.
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To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
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Created by:
Ratnok
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