RMI 2302 MODULE 1 UPDATED QUESTIONS AND
CORRECT ANSWERS
Question:
1. Static risks ________________ Refer to losses associated with lightning storms Do not change
over time Are never insurable Are not measurable
Answer:
Do not change over time
Question:
2. Carly is involved in a three-car automobile accident. Which type of risk is this an example of?
fundamental risk particular risk hazard risk core risk
Answer:
Particular risk car accidents are examples of particular risks that only affect a small number of people
at once.
Question:
3. Which of the following is NOT a method of categorizing risk?
pure versus speculative static versus dynamic core versus secondary certain versus uncertain
Answer:
Certain vs uncertain based on the defintion of risk there must be some uncertainty.
Question:
4. 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:
5. 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
Answer:
Number of losses
Question:
6. Post-Loss Objectives for an organization include:
Continuity of Operations Reduction is Anxiety Social Responsibility I only II only III only I and II II
and III I and III I, II, and III
Answer:
I and III
CORRECT ANSWERS
Question:
1. Static risks ________________ Refer to losses associated with lightning storms Do not change
over time Are never insurable Are not measurable
Answer:
Do not change over time
Question:
2. Carly is involved in a three-car automobile accident. Which type of risk is this an example of?
fundamental risk particular risk hazard risk core risk
Answer:
Particular risk car accidents are examples of particular risks that only affect a small number of people
at once.
Question:
3. Which of the following is NOT a method of categorizing risk?
pure versus speculative static versus dynamic core versus secondary certain versus uncertain
Answer:
Certain vs uncertain based on the defintion of risk there must be some uncertainty.
Question:
4. 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:
5. 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
Answer:
Number of losses
Question:
6. Post-Loss Objectives for an organization include:
Continuity of Operations Reduction is Anxiety Social Responsibility I only II only III only I and II II
and III I and III I, II, and III
Answer:
I and III
