RMI 2302 MODULE 1 ASSIGNMENT UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Karen won't allow any of the neighborhood children into her yard because she has a large swimming
pool and doesn't want anyone to fall in, resulting in her being responsible for the harm of a child. What
type of risk is Karen trying to avoid?
liability
property
personal
financial
Answer:
liability
Question:
2. Which of the following terms describes the immediate cause of loss?
peril
hazard
exposure
all of the above
Answer:
peril
Question:
3. Which of the following method(s) best identifies all the risks faced by an organization?
questionnaires
checklists
procedure guides combination of all of the above
Answer:
combination of all of the above
Question:
4. Which of the following is NOT a type of funded retention?
reserves
selfinsurance
captives
All of the above are examples of funded retention.
Answer:
All of the above are examples of funded retention.
, Question:
5. Tom is a college student at FSU. He has the option to buy a parking pass at the beginning of the year for
$250. If Tom doesn't buy the pass, he has to park on the street or pay the valet parking service $5 per day.
If Tom does not buy the parking pass, he expects to have to use the valet parking services 40 times.
However, he may end up using the valet service up to 80 times. Tom decides that he would rather pay the
$250 than risk not being able to find a spot on the street. Tom could be described as which of the
following:
risk averse
risk neutral
risk seeking
risk conscious
Answer:
risk averse
Question:
6. Risk prevention and risk reduction are both included under which of the following?
risk classification
risk identification
risk (loss) control
risk (loss) financing
Answer:
risk (loss) control
Question:
7. Risks affecting a large portion of the population at a given time are which of the following?
fundamental risks
particular risks
hazard risks
core risks
Answer:
fundamental risks
Question:
8. Loss severity describes which of the following?
number of losses
financial impact of losses
reputational damage of losses
none of the above
Answer:
financial impact of losses
Question:
9. Loss frequency describes which of the following?
number of losses financial impact of losses
both the number and severity of losses
none of the above
QUESTIONS AND CORRECT ANSWERS
Question:
1. Karen won't allow any of the neighborhood children into her yard because she has a large swimming
pool and doesn't want anyone to fall in, resulting in her being responsible for the harm of a child. What
type of risk is Karen trying to avoid?
liability
property
personal
financial
Answer:
liability
Question:
2. Which of the following terms describes the immediate cause of loss?
peril
hazard
exposure
all of the above
Answer:
peril
Question:
3. Which of the following method(s) best identifies all the risks faced by an organization?
questionnaires
checklists
procedure guides combination of all of the above
Answer:
combination of all of the above
Question:
4. Which of the following is NOT a type of funded retention?
reserves
selfinsurance
captives
All of the above are examples of funded retention.
Answer:
All of the above are examples of funded retention.
, Question:
5. Tom is a college student at FSU. He has the option to buy a parking pass at the beginning of the year for
$250. If Tom doesn't buy the pass, he has to park on the street or pay the valet parking service $5 per day.
If Tom does not buy the parking pass, he expects to have to use the valet parking services 40 times.
However, he may end up using the valet service up to 80 times. Tom decides that he would rather pay the
$250 than risk not being able to find a spot on the street. Tom could be described as which of the
following:
risk averse
risk neutral
risk seeking
risk conscious
Answer:
risk averse
Question:
6. Risk prevention and risk reduction are both included under which of the following?
risk classification
risk identification
risk (loss) control
risk (loss) financing
Answer:
risk (loss) control
Question:
7. Risks affecting a large portion of the population at a given time are which of the following?
fundamental risks
particular risks
hazard risks
core risks
Answer:
fundamental risks
Question:
8. Loss severity describes which of the following?
number of losses
financial impact of losses
reputational damage of losses
none of the above
Answer:
financial impact of losses
Question:
9. Loss frequency describes which of the following?
number of losses financial impact of losses
both the number and severity of losses
none of the above
