RMIN Daniel Brown Test 1 Exam
Questions and Answers 100% Solved
exposure - ✔✔things of value (assets) that could be lost
Perils - ✔✔things that could happen to your assets
cause of a loss
risk management - ✔✔what someone does to protect their assets or
prevent/ reduce their losses
risk - ✔✔a calculated possibility of a negative outcome
uncertainty concerning the occurrence of a loss
Calculated possibility - ✔✔a probablilistic outcome that is known or
estimated
ranges from 0 to 1 or a percentage
0 impossible event
,.5 most uncertainty
1 certain event
frequency - ✔✔how often a loss occurs
severity - ✔✔how much a loss costs when it does occur
hazard - ✔✔condition that creates or increases the frequency or severity of
a loss
does not cause a loss
physical hazard - ✔✔a physical condition that increases the frequency or
severity of loss
moral hazard - ✔✔the presence of insurance changes the behavior of the
insured
dishonesty or character defects in an individual that increase the frequency
or severity of loss
MoralE hazard - ✔✔carelessness or indifference to a loss, which increases
the frequency or severity of a loss
, legal hazard - ✔✔characteristics of legal system or regulatory environment
that increase the frequency environment that increase the frequency and or
severity of a loss
pure risk - ✔✔Loss
or
No Loss
Speculative risk - ✔✔Loss
or
no loss/no gain
or
gain
diversifiable risk - ✔✔affects only individuals or small groups
can be reduced/eliminated through diversification
risks aren't correlated
nondiversifiable risk - ✔✔affects the entire economy or large numbers of
groups/people within the economy
Questions and Answers 100% Solved
exposure - ✔✔things of value (assets) that could be lost
Perils - ✔✔things that could happen to your assets
cause of a loss
risk management - ✔✔what someone does to protect their assets or
prevent/ reduce their losses
risk - ✔✔a calculated possibility of a negative outcome
uncertainty concerning the occurrence of a loss
Calculated possibility - ✔✔a probablilistic outcome that is known or
estimated
ranges from 0 to 1 or a percentage
0 impossible event
,.5 most uncertainty
1 certain event
frequency - ✔✔how often a loss occurs
severity - ✔✔how much a loss costs when it does occur
hazard - ✔✔condition that creates or increases the frequency or severity of
a loss
does not cause a loss
physical hazard - ✔✔a physical condition that increases the frequency or
severity of loss
moral hazard - ✔✔the presence of insurance changes the behavior of the
insured
dishonesty or character defects in an individual that increase the frequency
or severity of loss
MoralE hazard - ✔✔carelessness or indifference to a loss, which increases
the frequency or severity of a loss
, legal hazard - ✔✔characteristics of legal system or regulatory environment
that increase the frequency environment that increase the frequency and or
severity of a loss
pure risk - ✔✔Loss
or
No Loss
Speculative risk - ✔✔Loss
or
no loss/no gain
or
gain
diversifiable risk - ✔✔affects only individuals or small groups
can be reduced/eliminated through diversification
risks aren't correlated
nondiversifiable risk - ✔✔affects the entire economy or large numbers of
groups/people within the economy
