RMIN 4000 TEST 1 BROWN UGA ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

RMIN 4000 TEST 1 BROWN UGA ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Exposures - Answer -things of value (assets) that could be lost Perils - Answer -things that cause injury or loss risk - Answer -a calculated possibility of a negative outcome Frequency - Answer -the number of losses (such as fire or theft) that occur within a specified time period. aka the probability of a loss Severity - Answer -the dollar amount of a loss for a specific peril (fire, theft, collision) aka How much does it cost when the loss does occur? Hazard - Answer -a condition that creates or increases the frequency or severity of loss but does NOT cause the loss. Physical Hazard - Answer -a physical condition that increases the frequency or severity of loss Moral Hazard - Answer -the presence of insurance changes the behavior of the insured. ex: making hail damage to get a check Morale hazard (attitudinal hazard) - Answer -A condition of carelessness or indifference that increases the f