22 Questions
Which of the following is NOT a risk strategy mentioned in the text?
Mitigate
What is the purpose of insurance?
To protect against possible costly risks
What is the main source of money for insurance claims?
Premiums paid by policyholders
Which term refers to the amount paid to an insurance company in return for taking on a portion of the risk?
Premium
Which term refers to the amount of money paid by the insured in a claim before the insurance company kicks in?
Deductible
Which term refers to a formal request to an insurance company for coverage or compensation for a covered loss or event?
Claim
Which term refers to a document that details the terms and conditions of an insurance contract?
Policy
Which of the following is an example of insurable interest?
Max, your pet hamster
Who is responsible for determining the premiums to be paid for an insurance policy?
Underwriters
What do insurance claim adjusters do?
Investigate claims to determine how much your insurer should pay
Which types of insurance will be covered in this class?
Health, car, home, disability, and life insurance
Which of the following is an example of mitigating risk through altering the severity?
Wearing a seat belt
Which of the following is an example of mitigating risk through altering the frequency?
Multi-Factor Authorization
Which of the following is an example of transferring risk through altering the severity?
House Fire
Which of the following is NOT a role in the insurance industry?
Insurance investigator
What is the purpose of insurable interest in insurance?
To protect emotional and personal connections
Which of the following is an example of insurable interest?
A pet hamster
What types of insurance will be covered in this class?
Health, car, home, disability, and life insurance
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.
Under the principle of subrogation, an insurance company has the right to
Recover the money they've paid out from the responsible party.
Which term refers to something that causes or has the potential to cause a loss?
Peril
Which of the following is an example of insurable interest?
Owning a house and insuring it against fire damage.
"Risk Management Strategies: Avoid, Alter, or Accept?" - Test your knowledge on dealing with risks and learn the different strategies to handle them. Discover how to avoid, alter, or accept risks, including mitigation and risk transfer techniques. Understand the importance of assessing the frequency and severity of risks to determine the most suitable risk strategy. Take the quiz now and enhance your risk management skills!
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