CAIB 1 Questions with complete solution 2024

CAIB 1 Questions with complete solution 2024 Provide 1 reason why persons should not rely on control of risk as a total solution in eliminating financial loss -correct answer -Equipment will not work 100% of the time -certain types of losses such as wind, hail and lightning cannot be effectively controlled People can choose to deal with risk in a variety of ways identify four possible options and provide a brief explanation of each -correct answer Avoid the risk - rent rather than buy Control the risk - loss control measures Retain the risk - self insurance Transfer the risk - purchase insurance Which of the four RISKS is the most practical for most people? -correct answer Transfer of Risk What are the five elements required to be present in all types of contracts? -correct answer Agreement, consideration, legality of object, legal capacity of parties to contract, and genuine intention Are individuals permitted to enter into a contract? -correct answer Individuals can contract if they are competent to do so Are trade nam