Mastering Risk Management Strategies

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Which of the following is NOT a risk strategy mentioned in the text?

Mitigate (correct)

Accept

Avoid

Alter

What is the purpose of insurance?

To transfer the severity of risks

To protect against possible costly risks (correct)

To reduce the frequency of risks

To eliminate all risks

What is the main source of money for insurance claims?

Donations from individuals

Government funding

Premiums paid by policyholders (correct)

Investments made by insurance companies

Which term refers to the amount paid to an insurance company in return for taking on a portion of the risk?

Premium Signup and view all the answers

Which term refers to the amount of money paid by the insured in a claim before the insurance company kicks in?

Deductible Signup and view all the answers

Which term refers to a formal request to an insurance company for coverage or compensation for a covered loss or event?

Claim Signup and view all the answers

Which term refers to a document that details the terms and conditions of an insurance contract?

Policy Signup and view all the answers

Which of the following is an example of insurable interest?

Max, your pet hamster Signup and view all the answers

Who is responsible for determining the premiums to be paid for an insurance policy?

Underwriters Signup and view all the answers

What do insurance claim adjusters do?

Investigate claims to determine how much your insurer should pay Signup and view all the answers

Which types of insurance will be covered in this class?

Health, car, home, disability, and life insurance Signup and view all the answers

Which of the following is an example of mitigating risk through altering the severity?

Wearing a seat belt Signup and view all the answers

Which of the following is an example of mitigating risk through altering the frequency?

Multi-Factor Authorization Signup and view all the answers

Which of the following is an example of transferring risk through altering the severity?

House Fire Signup and view all the answers

Which of the following is NOT a role in the insurance industry?

Insurance investigator Signup and view all the answers

What is the purpose of insurable interest in insurance?

To protect emotional and personal connections Signup and view all the answers

Which of the following is an example of insurable interest?

A pet hamster Signup and view all the answers

What types of insurance will be covered in this class?

Health, car, home, disability, and life insurance Signup and view all the answers

According to the principle of indemnity, insurance companies will compensate the insured for

The actual financial loss suffered, up to the amount that would allow the insured to recover their loss but not make a profit from it. Signup and view all the answers

Under the principle of subrogation, an insurance company has the right to

Recover the money they've paid out from the responsible party. Signup and view all the answers

Which term refers to something that causes or has the potential to cause a loss?

Peril Signup and view all the answers

Which of the following is an example of insurable interest?

Owning a house and insuring it against fire damage. Signup and view all the answers

Mastering Risk Management Strategies

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Questions and Answers

Which of the following is NOT a risk strategy mentioned in the text?

What is the purpose of insurance?

What is the main source of money for insurance claims?

Which term refers to the amount paid to an insurance company in return for taking on a portion of the risk?

Which term refers to the amount of money paid by the insured in a claim before the insurance company kicks in?

Which term refers to a formal request to an insurance company for coverage or compensation for a covered loss or event?

Which term refers to a document that details the terms and conditions of an insurance contract?

Which of the following is an example of insurable interest?

Who is responsible for determining the premiums to be paid for an insurance policy?

What do insurance claim adjusters do?

Which types of insurance will be covered in this class?

Which of the following is an example of mitigating risk through altering the severity?

Which of the following is an example of mitigating risk through altering the frequency?

Which of the following is an example of transferring risk through altering the severity?

Which of the following is NOT a role in the insurance industry?

What is the purpose of insurable interest in insurance?

Which of the following is an example of insurable interest?

What types of insurance will be covered in this class?

According to the principle of indemnity, insurance companies will compensate the insured for

Under the principle of subrogation, an insurance company has the right to

Which term refers to something that causes or has the potential to cause a loss?

Which of the following is an example of insurable interest?

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