RMI exam 1 Complete Questions And Answers(Latest Update 2024)
Risk defined - ANSWER - A situation involving exposure to danger - uncertainty concerning the occurrence of a loss - possibility of loss on the person or entity that is insured Peril - ANSWER Cause of a loss - auto accident: collision is the peril Hazard - ANSWER Condition that increases the chance of a loss Physical hazard - ANSWER Physical condition that increases the frequency/severity of loss Moral hazard - ANSWER Dishonesty or character defects in an individual that increases frequency of loss Objective Risk - ANSWER Relative variation of actual loss from expected loss Subjective risk - ANSWER Uncertainty based on a person's mental condition or state of mind Pure risk - ANSWER Situation in which there are only the possibilities of loss or no loss Speculative risk - ANSWER Situation in which either profit or loss is possible (gambling) Diversifiable risk - ANSWER Affects only individuals or small groups (car theft) Nondiversifiable risk - ANSWER Affects the entire economy or large numbers of persons or groups within the economy (hurricane, flood) Correlated risk - ANSWER Simultaneous occurrence of many losses from a single event
Document information
- Uploaded on
- February 22, 2024
- Number of pages
- 5
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
