Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the primary function of insurance in relation to perils?
What is the primary function of insurance in relation to perils?
- To eliminate the risk of loss
- To compensate the owner or beneficiary of the asset for the loss
- To reduce the financial loss on the owner or beneficiary of the asset (correct)
- To prevent the occurrence of the peril
What is the correct classification of the risk of a flood?
What is the correct classification of the risk of a flood?
- Financial risk
- Catastrophic risk
- Speculative risk
- Pure risk (correct)
What is the main difference between a peril and a hazard?
What is the main difference between a peril and a hazard?
- A peril is a type of risk, while a hazard is a type of loss
- A peril is a type of loss, while a hazard is a type of risk
- A peril is an event that may cause a loss, while a hazard is a condition that increases the chances of loss (correct)
- A peril is a condition that increases the chances of loss, while a hazard accelerates the loss
What is an example of a physical hazard?
What is an example of a physical hazard?
Signup and view all the answers
What is the primary goal of loss reduction techniques?
What is the primary goal of loss reduction techniques?
Signup and view all the answers
What is the term for the uncertainty of outcome?
What is the term for the uncertainty of outcome?
Signup and view all the answers
What is the correct classification of the risk of a landslide?
What is the correct classification of the risk of a landslide?
Signup and view all the answers
What is the term for the costs of repair, replacement, or reinstatement and consequential losses until repair, replacement, or reinstatement?
What is the term for the costs of repair, replacement, or reinstatement and consequential losses until repair, replacement, or reinstatement?
Signup and view all the answers
What is the correct way of managing risks?
What is the correct way of managing risks?
Signup and view all the answers
Flashcards are hidden until you start studying
