Webce Actual Questions

WEBCE ACTUAL QUESTIONS & VERIFIED ANSWERS

RiskB-BCORRECTBANSWER-chanceBofBloss

LossB-BCORRECTBANSWER-anBunplannedBreductionBinBeconomicBvalue

WhatBriskBisBinsurable?B-BCORRECTBANSWER-pureBrisk

WhatBareBtheBtwoBtypesBofBrisk?B-BCORRECTBANSWER-pureBriskBandBspeculativeBrisk

InvolvesBtheBpossibilityBofBaBloss?B-BCORRECTBANSWER-pureBrisk

CanBresultBinBeitherBlossBorBgain?B-BCORRECTBANSWER-speculativeBrisk

LossB-BCORRECTBANSWER-anBunplannedBreductionBinBeconomicBvalue

DirectBlossB-BCORRECTBANSWER-immediateBresultBofBanBeventBinvolvingBanBinsuredBperil

IndirectBlossB-BCORRECTBANSWER-aBlossBthatBresultsBfromBaBdirectBloss

LossBexposureB-BCORRECTBANSWER-beingBsubjectBtoBpossibleBloss

UnderwritingBProcessB-BCORRECTBANSWER-
theBprocessBthatBdeterminesBifBtheBriskBproposedBforBinsuranceBshouldBbeBacceptedBorBrejected

PerilB-BCORRECTBANSWER-
theBdirectBcauseBofBaBlossBandBtheBeventBthatBinsuranceBprotectsBagainst

LifeB&BhealthBinsuranceBcoveredBperilsBinclude:B-BCORRECTBANSWER-death,Bdisability,B&Bsickness

HazardB-BCORRECTBANSWER-
aBconditionBthatBincreasesBtheBchanceBofBlossBdueBtoBaBperilBorBincreasesBtheBseverityBofBaBloss

3BcategoriesBofBhazardsB-BCORRECTBANSWER-moralBhazards,BmoraleBhazards,B&BphysicalBhazards

MoralBHazardsB-BCORRECTBANSWER-
theseBareBcharacterBweaknesses,Bhabits,BandBriskyBactivitiesBthatBincreaseBtheBpossibilityBofBloss

MoraleBHazardsB-BCORRECTBANSWER-
theseBareBaBstateBofBmindBorBattitudesBthatBcreateBanBindifferenceBtoBloss

PhysicalBHazardsB-BCORRECTBANSWER-
theseBareBphysicalBconditionsBthatBincreaseBtheBchanceBofBloss

RiskBManagementB-BCORRECTBANSWER-
theBnaturalBprocessBweBallBgoBthroughBtoBcontendBwithBtheBhazardsBandBperilsBweBfaceBdaily

, CommonBriskBmanagementBtechniques:B-BCORRECTBANSWER-
avoidBtheBrisk,BreduceBtheBrisk,BretainBtheBrisk,BshareBtheBriskBwithBothers,B&BtransferBtheBriskBtoBso
meoneBelse

RiskBAvoidanceB-BCORRECTBANSWER-oneBofBtheBwaysBweBmanageBrisks

RiskBRetentionB-BCORRECTBANSWER-
choosingBtoBuseBexistingBassetsBtoBpayBforBanyBlossesBifBtheBriskBbecomesBaBreality;BalsoBknownBasBt
heB"doBnothing"Boption

DeductiblesB-BCORRECTBANSWER-
aBstatedBsunBofBmoneyBthatBtheBinsuredBmustBpayBbeforeBanyBmajorBmedicalBpolicyBbenefitsBareBp
aid

RiskBSharingB-BCORRECTBANSWER-
oneBofBtheBoldestBwaysBtoBmanageBrisks;BsimilarBtoBbuyingBinsuranceBinBthatBaBpartBofBtheBriskBisBtr
ansferredBtoBothers

RiskBTransferB-BCORRECTBANSWER-
andBindividualBorBbusinessBtransfersBtheBriskBofBlossBtoBanBinsuranceBcompanyBinBreturnBforBaBprem
ium

TheBriskBmanagementBtechniqueBofBwhatBisBtheBbasisBforBmostBinsuranceBtoday?B-
BCORRECTBANSWER-riskBtransfer



InsurableBRiskB-BCORRECTBANSWER-
anBapplicantBisBanBinsurableBriskBtoBtheBinsurerBifBheBorBsheBmeetsBcertainBcriteriaBforBinsurability;Bi
fBtheseBcriteriaBareBmet,BthenBtheBapplicantBisBinsurable.

ToBbeBinsurable,BaBriskBmustBconformBtoBcertainBstandards:B-BCORRECTBANSWER-
definable,Bmeasurable,Binsured'sBcontrol,BlargeBgroupBofBsimilarBrisks,BfinanciallyBcatastrophic,B&B
exclusions

UnderwritersB-BCORRECTBANSWER-
determineBifBtheBproposedBriskBshouldBbeBacceptedBorBrejected

LawBofBLargeBNumbersB-BCORRECTBANSWER-
aBmethodBofBfutureBlossesBwithBgreatBaccuracy.BitBisBbasedBonBtheBprincipleBthatBtheBgreaterBtheBn
umberBofBincidentsBorBaBrandomBprocess,BtheBmoreBtheBexpectedBnumberBofBincidentsBandBthatBa
ctualBnumberBofBincidentsBtendBtoBbecomeBtheBsame.BitBisBtheBmathematicalBprincipleBofBprobabili
tyBonBwhichBinsuranceBrests.