FBLA Insurance & Risk Management
Exam Questions With 100% Verified
Answers
Risk -
correct answer ✅Uncertainty of something, concerns a loss
Risk refers to ___ and ___ being injured -
correct answer ✅Property & Life
Objective Risk -
correct answer ✅Defined as relative variation of actual loss from
expected loss
Objective Risk varies inversely with -
correct answer ✅square root of # of cases under observation
EX: 10,000 houses were insured
Objective Risk is 10/100 or 10%
The Law of Large Numbers -
correct answer ✅states that if the # of exposure units increases,
the more closely the actual loss experience will approach the
expected loss experience
, FBLA Insurance & Risk Management
Exam Questions With 100% Verified
Answers
Subjective Risk -
correct answer ✅defined as uncertainty based on a person's
mental condition or state of mind
Chance of Loss -
correct answer ✅probability that an event will occur
Probability has both ___ and ___ aspects -
correct answer ✅objective and subjective
Objective Probability -
correct answer ✅refers to the long-run relative frequency of an
event based on the assumptions of an infinite number of
observations and of no change in underlying conditions
Peril -
correct answer ✅defined as the cause of loss
Hazard -
correct answer ✅condition that creates or increases chance of loss
Exam Questions With 100% Verified
Answers
Risk -
correct answer ✅Uncertainty of something, concerns a loss
Risk refers to ___ and ___ being injured -
correct answer ✅Property & Life
Objective Risk -
correct answer ✅Defined as relative variation of actual loss from
expected loss
Objective Risk varies inversely with -
correct answer ✅square root of # of cases under observation
EX: 10,000 houses were insured
Objective Risk is 10/100 or 10%
The Law of Large Numbers -
correct answer ✅states that if the # of exposure units increases,
the more closely the actual loss experience will approach the
expected loss experience
, FBLA Insurance & Risk Management
Exam Questions With 100% Verified
Answers
Subjective Risk -
correct answer ✅defined as uncertainty based on a person's
mental condition or state of mind
Chance of Loss -
correct answer ✅probability that an event will occur
Probability has both ___ and ___ aspects -
correct answer ✅objective and subjective
Objective Probability -
correct answer ✅refers to the long-run relative frequency of an
event based on the assumptions of an infinite number of
observations and of no change in underlying conditions
Peril -
correct answer ✅defined as the cause of loss
Hazard -
correct answer ✅condition that creates or increases chance of loss
