AAMI COMP Final Exam Questions and
Answers Verified Solutions Latest Update
2026/2027
Question:
Risk.
Answer:
a condition in which there is a possibility of an adverse deviation from a desired outcome that is
expected of hoped for.
Question:
Risk Management.
Answer:
all efforts designed to preserve assets and earning power associated with a business.
Question:
Market Risk.
Answer:
is the uncertainty associated with an investment decision.
Question:
Pure Risk.
Answer:
a situation where only loss or no loss can occur.
Question:
Risk Control.
,Answer:
minimizes losses through avoidance and/or reduction. Ex: Security Officers, cameras, Employee
Handbooks, driving safely.
Question:
Risk Financing.
Answer:
the process of transferring risk versus risk retention. Ex: purchasing insurance.
Question:
Property Risks.
Answer:
risks that involve tangible and intangible assets.
Question:
Perils.
Answer:
a cause of loss by either natural events or actions of people.
Question:
Losses.
Answer:
direct losses such as damage to property and indirect losses which arise from the inability to
continue normal business operations.
Question:
Statutory Liability.
Answer:
,laws create obligations on part of the business. (Workers Compensation laws)
Question:
Contractual Liability.
Answer:
involve contracts entered into with other parties.
Question:
Tort Liability.
Answer:
civil wrongs including breach of contracts and torts.
Question:
Business Owners Policies.
Answer:
a business version of the homeowners policy.
Question:
Casualty Insurance.
Answer:
insurance that provides monetary benefits to a business that has experienced an unforeseen peril,
such as a flood or fire.
Question:
Named Peril Approach.
Answer:
casualty insurance that starts from the position of covering nothing, and build up the risks it
protects against, step by step by naming specific parts.
, Question:
All Risk Approach.
Answer:
casualty insurance that provides a blanketed approach to risk covering whatever risk arises.
Question:
Valuation.
Answer:
with BOP's real and personal property are valued at replacement cost.
Question:
Insurance to Value.
Answer:
a provision of property insurance policies that requires the insured to carry a minimum policy limit
relative to the value of the property.
Question:
Business Interruption Insurance.
Answer:
insurance that protects companies during the period necessary to restore the property damaged by
an insured peril.
Question:
General Liability Coverage.
Answer:
coverage provides payment for bodily injury and property damage. It covers customer oriented risk
such as injury to customers caused by a firms product.
Question:
Answers Verified Solutions Latest Update
2026/2027
Question:
Risk.
Answer:
a condition in which there is a possibility of an adverse deviation from a desired outcome that is
expected of hoped for.
Question:
Risk Management.
Answer:
all efforts designed to preserve assets and earning power associated with a business.
Question:
Market Risk.
Answer:
is the uncertainty associated with an investment decision.
Question:
Pure Risk.
Answer:
a situation where only loss or no loss can occur.
Question:
Risk Control.
,Answer:
minimizes losses through avoidance and/or reduction. Ex: Security Officers, cameras, Employee
Handbooks, driving safely.
Question:
Risk Financing.
Answer:
the process of transferring risk versus risk retention. Ex: purchasing insurance.
Question:
Property Risks.
Answer:
risks that involve tangible and intangible assets.
Question:
Perils.
Answer:
a cause of loss by either natural events or actions of people.
Question:
Losses.
Answer:
direct losses such as damage to property and indirect losses which arise from the inability to
continue normal business operations.
Question:
Statutory Liability.
Answer:
,laws create obligations on part of the business. (Workers Compensation laws)
Question:
Contractual Liability.
Answer:
involve contracts entered into with other parties.
Question:
Tort Liability.
Answer:
civil wrongs including breach of contracts and torts.
Question:
Business Owners Policies.
Answer:
a business version of the homeowners policy.
Question:
Casualty Insurance.
Answer:
insurance that provides monetary benefits to a business that has experienced an unforeseen peril,
such as a flood or fire.
Question:
Named Peril Approach.
Answer:
casualty insurance that starts from the position of covering nothing, and build up the risks it
protects against, step by step by naming specific parts.
, Question:
All Risk Approach.
Answer:
casualty insurance that provides a blanketed approach to risk covering whatever risk arises.
Question:
Valuation.
Answer:
with BOP's real and personal property are valued at replacement cost.
Question:
Insurance to Value.
Answer:
a provision of property insurance policies that requires the insured to carry a minimum policy limit
relative to the value of the property.
Question:
Business Interruption Insurance.
Answer:
insurance that protects companies during the period necessary to restore the property damaged by
an insured peril.
Question:
General Liability Coverage.
Answer:
coverage provides payment for bodily injury and property damage. It covers customer oriented risk
such as injury to customers caused by a firms product.
Question:
