RMIN 5100S Exam -1 questions with answers

RMIN 5100S Exam #1 questions with |\ |\ |\ |\ |\ |\




answers


What are the two different categories of property? What is the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



difference between the two? - CORRECT ANSWERS ✔✔The two
|\ |\ |\ |\ |\ |\ |\ |\ |\



different types of property are tangible and intangible property.
|\ |\ |\ |\ |\ |\ |\ |\ |\




- Tangible property is property that has a physical form, such as a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



piece of equipment
|\ |\




- Intangible property is property that has no physical form, such as a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



patent or copyright
|\ |\ |\




What are the two types of tangible property? What are their
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



differences? - CORRECT ANSWERS ✔✔Real Property and Personal
|\ |\ |\ |\ |\ |\ |\



Property
|\




- Real Property = tangible property consisting of land, all structures
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



permanently attached to it, and whatever is growing on it. |\ |\ |\ |\ |\ |\ |\ |\ |\




- Personal Property = all tangible or intangible property that is not
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



real property
|\




What two losses does a property owner experience when their
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



personal property is stolen? - CORRECT ANSWERS ✔✔They suffer
|\ |\ |\ |\ |\ |\ |\ |\ |\



a total loss of that property and any possible income that could have
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



been generated by that property.
|\ |\ |\ |\ |\

,List the six steps in the risk management process - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔1. Identify Loss Exposures |\ |\ |\ |\




2. Analyze Loss Exposures
|\ |\ |\




3. Examine Feasibility of Risk Management Techniques
|\ |\ |\ |\ |\ |\




4. Select Appropriate Risk Management Technique(s)
|\ |\ |\ |\ |\




5. Implement Selected Risk Management Technique(s)
|\ |\ |\ |\ |\




6. Monitor Results + Revise Risk Management Program
|\ |\ |\ |\ |\ |\ |\




What are risk financing techniques? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\



✔✔Risk financing techniques are risk management techniques that
|\ |\ |\ |\ |\ |\ |\ |\



generate funds to finance losses that risk control techniques cannot
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



entirely prevent or reduce|\ |\ |\




What are the different types of risk financing techniques? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



CORRECT ANSWERS ✔✔1. Retention = generating funds from
|\ |\ |\ |\ |\ |\ |\ |\



within an organization to pay for losses
|\ |\ |\ |\ |\ |\




2. Transfer = generating funds from outside an organization to pay
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



for losses (like insurance)
|\ |\ |\




What are risk control techniques? - CORRECT ANSWERS ✔✔Risk
|\ |\ |\ |\ |\ |\ |\ |\ |\



management techniques that minimize the frequency or severity of
|\ |\ |\ |\ |\ |\ |\ |\ |\



losses, or make those losses more predictable
|\ |\ |\ |\ |\ |\

, What are the different types of risk control techniques? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔1. Avoidance |\ |\




2. Loss prevention (reduces frequency)
|\ |\ |\ |\




3. Loss reduction (reduces severity)
|\ |\ |\ |\




4. Separation
|\




5. Diversification
|\




What is a hostile fire? - CORRECT ANSWERS ✔✔A fire that leaves
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



its intended place, such as a spark that escapes a fireplace and sets
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



the carpet on fire
|\ |\ |\




How does construction type influence fire control? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔The definitions of construction types from the ISO |\ |\ |\ |\ |\ |\ |\ |\ |\



indicate the fire resistance of several types of construction:
|\ |\ |\ |\ |\ |\ |\ |\




- Wood frame = exterior walls are constructed of wood or other
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



combustible materials (most susceptible) |\ |\ |\




- Jointed masonry = exterior walls are constructed of masonry
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



materials such as brick or stone, with other supporting elements
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



such as joints and beams made of wood (less combustible than
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



wooden frame) |\




- Noncombustible construction = exterior walls, floor, and roof are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



constructed of and supported by metal, gypsum, or other |\ |\ |\ |\ |\ |\ |\ |\ |\



noncombustible materials. |\