RIBO: ENTRY LEVEL 1
, Risk - CORRECT ANSWERS-Chance of a loss
Which type of risk is insured and why? - CORRECT ANSWERS-Pure risk, because
speculative risk is comparable to gambling.
3 Ways risk (management) is dealt with? - CORRECT ANSWERS-REDUCE:
preventative measures
ASSUME/RETAIN: Self-insure
TRANSFER: purchase insurance
Which of the following is not a risk?
A) Assume or retain risk
B) Reduce the risk
C) Doing nothing / avoiding the risk
D) Transfer the risk - CORRECT ANSWERS-C) Doing nothing / avoiding the risk
Insurer - CORRECT ANSWERS-Insurance company
Stock Insurance company - CORRECT ANSWERS-Owned by shareholders
Mutual insurance company - CORRECT ANSWERS-Owned by policyholders - Usually
smaller, for Ex., One big claim can flux the premium. Once these companies become
big they are titled stockholders.
Co-operative associations - CORRECT ANSWERS-Not looking to consume profits,
these policies are expected to be cheaper.
Lloyd's of London - CORRECT ANSWERS-Not an insurance company but rather an
insurance market.
Ex. Syndicates are investors for things such as athletes legs, voices etc.
High risk Vs. High reward.
Insured - CORRECT ANSWERS-Who is covered.
Named insured = policy holder (owner)
What is not included in the general types of insurance? - CORRECT ANSWERS-Life
and Health
Application of insurance includes: - CORRECT ANSWERS-Bonds, Liability, Accident /
sickness, Valued items, personal articles coverage/floater
Declaration - CORRECT ANSWERS-Signed approving information provided is the
upmost truth
, Risk - CORRECT ANSWERS-Chance of a loss
Which type of risk is insured and why? - CORRECT ANSWERS-Pure risk, because
speculative risk is comparable to gambling.
3 Ways risk (management) is dealt with? - CORRECT ANSWERS-REDUCE:
preventative measures
ASSUME/RETAIN: Self-insure
TRANSFER: purchase insurance
Which of the following is not a risk?
A) Assume or retain risk
B) Reduce the risk
C) Doing nothing / avoiding the risk
D) Transfer the risk - CORRECT ANSWERS-C) Doing nothing / avoiding the risk
Insurer - CORRECT ANSWERS-Insurance company
Stock Insurance company - CORRECT ANSWERS-Owned by shareholders
Mutual insurance company - CORRECT ANSWERS-Owned by policyholders - Usually
smaller, for Ex., One big claim can flux the premium. Once these companies become
big they are titled stockholders.
Co-operative associations - CORRECT ANSWERS-Not looking to consume profits,
these policies are expected to be cheaper.
Lloyd's of London - CORRECT ANSWERS-Not an insurance company but rather an
insurance market.
Ex. Syndicates are investors for things such as athletes legs, voices etc.
High risk Vs. High reward.
Insured - CORRECT ANSWERS-Who is covered.
Named insured = policy holder (owner)
What is not included in the general types of insurance? - CORRECT ANSWERS-Life
and Health
Application of insurance includes: - CORRECT ANSWERS-Bonds, Liability, Accident /
sickness, Valued items, personal articles coverage/floater
Declaration - CORRECT ANSWERS-Signed approving information provided is the
upmost truth
