Brown RMIN 5100s test 1 Questions With Answers 2026
Updated
1. Categories of commercial loss exposures: 1. property loss
2. personnel loss
3. liability loss
4. net income loss
2. Property loss: -tangible (real estate, personal property)
-intangible (patent, copyright)
3. Personnel Loss: death, disability, retirement, injury of employees
4. liability loss: your responsibility for bodily injury, property damage, or financial
loss to someone
5. net income loss: reduction in income due to direct loss
6. Risk management process: 1. Identify loss exposures
2. Measure and analyze the loss exposures
3. Consider and select the appropriate risk management techniques
4. Implement and monitor the risk management program
7. identify loss exposures: first step and most important in the risk management
process
8. How to identify loss exposures: -document analysis
-compliance reviews
-inspections
1/5
, -expertise
9. Ways to identify loss exposures with document analysis?: 1. risk assessment
questionnaires and checklists
2. financial statements
3. contracts
4. insurance policies
5. organizational policies
6. flowcharts & organization charts
7. loss histories
10. Step 2: Measure and Analyze Loss Exposures: involves estimating the likely
significance of possible loss exposures based on: frequency, severity, total dollar
losses, maximum possible losses, probable maximum losses (PML), and timing
11. high frequency, low severity: funded reserve (retain) or loss prevention
12. low frequency, low severity: unfunded retention
13. high frequency, high severity: avoidance, captive or risk retention group, loss
prevention/reduction
14. low frequency, high severity: insurance or loss reduction
15. implement and monitor the chosen techniques: -often require cooperation
among multiple departments
2/5
Updated
1. Categories of commercial loss exposures: 1. property loss
2. personnel loss
3. liability loss
4. net income loss
2. Property loss: -tangible (real estate, personal property)
-intangible (patent, copyright)
3. Personnel Loss: death, disability, retirement, injury of employees
4. liability loss: your responsibility for bodily injury, property damage, or financial
loss to someone
5. net income loss: reduction in income due to direct loss
6. Risk management process: 1. Identify loss exposures
2. Measure and analyze the loss exposures
3. Consider and select the appropriate risk management techniques
4. Implement and monitor the risk management program
7. identify loss exposures: first step and most important in the risk management
process
8. How to identify loss exposures: -document analysis
-compliance reviews
-inspections
1/5
, -expertise
9. Ways to identify loss exposures with document analysis?: 1. risk assessment
questionnaires and checklists
2. financial statements
3. contracts
4. insurance policies
5. organizational policies
6. flowcharts & organization charts
7. loss histories
10. Step 2: Measure and Analyze Loss Exposures: involves estimating the likely
significance of possible loss exposures based on: frequency, severity, total dollar
losses, maximum possible losses, probable maximum losses (PML), and timing
11. high frequency, low severity: funded reserve (retain) or loss prevention
12. low frequency, low severity: unfunded retention
13. high frequency, high severity: avoidance, captive or risk retention group, loss
prevention/reduction
14. low frequency, high severity: insurance or loss reduction
15. implement and monitor the chosen techniques: -often require cooperation
among multiple departments
2/5
