RMIN 4000 uga test 1
4 types of dangers - ANS-1) bodily chance
2) ethical danger
3) attitudinal threat
4) legal threat
6 traits of an insurable risk - ANS-1) there need to be a massive wide variety of exposure
devices
2) the loss must be unintended and unintended
three) the loss should be determinable and measurable
four) the loss need to now not be catastrophic
5) the risk of loss should be calculable
6) the top class should be economically feasible
energetic retention - ANS-active danger retention method that an person is consciously
aware of the threat and deliberately plans to maintain all or part of it.
Example: motorist may also desire to preserve the hazard of a small collision loss via
purchasing an vehicle coverage coverage $500 or higher deductible
actuary - ANS-rates and charges are decided via this using employer beyond loss enjoy and
enterprise records
detrimental selection - ANS-the tendency of humans with a better than average hazard of
loss to are searching for coverage at preferred quotes, which, if now not controlled by way of
underwriting consequences in higher than expected loss stages
instance: high chance drivers who purchase insurance at trendy charges
attitudinal chance - ANS-carelessness or indifference to a loss, which increases the
frequency or severity of a loss
instance: leaving car keys in an unlocked vehicle, which will increase the hazard of theft,
changing lanes on toll road without blinker
avoidance - ANS-instance: keep away from the risk of being mugged in a high crime region
by using staying far from excessive crime rate areas
blessings of insurance to society - ANS--indemnification for loss
-discount of fear and fear
-source of funding budget
-loss prevention
-enhancement of credit score
, captive insurer - ANS-insurer owned by way of a figure company for the cause of insuring
the determine organization's loss exposures
-unmarried determine captive
-association or institution captive is owned by means of numerous mother and father
ceding business enterprise - ANS-primary insurer
cession - ANS-amount of insurance ceded to the reinsurer
threat of loss - ANS-the opportunity that an event will occur
business dangers - ANS--belongings danger
-liability chance
-lack of commercial enterprise profits
-cybersecurity and identity robbery
-human resource exposures
-overseas loss
-intangible
-authorities exposures
deductible - ANS-distinct amount subtracted from the loss charge otherwise payable to the
insured
direct loss - ANS-monetary loss that results from the bodily damage, destruction, or theft of
property
instance: physical harm to home after hearth
diversifiable chance - ANS-a danger that impacts only people or small companies and not
the complete economic system
instance: most effective people and business corporations that experience such losses are
affected, now not the complete economic system
diversification - ANS-decreased the risk of loss by using spreading the loss exposure across
one-of-a-kind parties.
Instance: overseas clients and home customers
duplication - ANS-having back usaor copies of crucial files
enterprise chance - ANS-a time period that encompasses all main dangers confronted by
way of a business organization. Such dangers consist of natural hazard, speculative danger,
strategic hazard, operational chance, and financial chance
4 types of dangers - ANS-1) bodily chance
2) ethical danger
3) attitudinal threat
4) legal threat
6 traits of an insurable risk - ANS-1) there need to be a massive wide variety of exposure
devices
2) the loss must be unintended and unintended
three) the loss should be determinable and measurable
four) the loss need to now not be catastrophic
5) the risk of loss should be calculable
6) the top class should be economically feasible
energetic retention - ANS-active danger retention method that an person is consciously
aware of the threat and deliberately plans to maintain all or part of it.
Example: motorist may also desire to preserve the hazard of a small collision loss via
purchasing an vehicle coverage coverage $500 or higher deductible
actuary - ANS-rates and charges are decided via this using employer beyond loss enjoy and
enterprise records
detrimental selection - ANS-the tendency of humans with a better than average hazard of
loss to are searching for coverage at preferred quotes, which, if now not controlled by way of
underwriting consequences in higher than expected loss stages
instance: high chance drivers who purchase insurance at trendy charges
attitudinal chance - ANS-carelessness or indifference to a loss, which increases the
frequency or severity of a loss
instance: leaving car keys in an unlocked vehicle, which will increase the hazard of theft,
changing lanes on toll road without blinker
avoidance - ANS-instance: keep away from the risk of being mugged in a high crime region
by using staying far from excessive crime rate areas
blessings of insurance to society - ANS--indemnification for loss
-discount of fear and fear
-source of funding budget
-loss prevention
-enhancement of credit score
, captive insurer - ANS-insurer owned by way of a figure company for the cause of insuring
the determine organization's loss exposures
-unmarried determine captive
-association or institution captive is owned by means of numerous mother and father
ceding business enterprise - ANS-primary insurer
cession - ANS-amount of insurance ceded to the reinsurer
threat of loss - ANS-the opportunity that an event will occur
business dangers - ANS--belongings danger
-liability chance
-lack of commercial enterprise profits
-cybersecurity and identity robbery
-human resource exposures
-overseas loss
-intangible
-authorities exposures
deductible - ANS-distinct amount subtracted from the loss charge otherwise payable to the
insured
direct loss - ANS-monetary loss that results from the bodily damage, destruction, or theft of
property
instance: physical harm to home after hearth
diversifiable chance - ANS-a danger that impacts only people or small companies and not
the complete economic system
instance: most effective people and business corporations that experience such losses are
affected, now not the complete economic system
diversification - ANS-decreased the risk of loss by using spreading the loss exposure across
one-of-a-kind parties.
Instance: overseas clients and home customers
duplication - ANS-having back usaor copies of crucial files
enterprise chance - ANS-a time period that encompasses all main dangers confronted by
way of a business organization. Such dangers consist of natural hazard, speculative danger,
strategic hazard, operational chance, and financial chance
