- Study guides, Class notes & Summaries

RMI Exam Questions and Answers

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12 pages

Written in 2024/2025

Grade A+

CLOUNDLite

RMI Exam 2 Latest Updated with Complete Solutions

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24 pages

Written in 2024/2025

Grade A+

CLOUNDLite

2024 RMI PRACTICE FINAL EXAM QUESTIONS AND ANSWERS multiple choice selection

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11 pages

Written in 2023/2024

ProfessorMarie

Rmi Final Review 2 Questions & Answers Rated 100% Correct!!

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8 pages

Written in 2023/2024

Grade A+

EvaTee

Insurance Supply - Insurers are willing to sell insurance at a particular price. Pi - Price of insurance Pi = P* + Risk Charge + Loading Pmax - the most an individual will pay for insurance for a particular risk. Risks are insurarable if.. - Pi < Pmax Why might Pi > Pmax? - - Pi is too high - risk charge is too high, loading costs are too high. - Pmax is too low - individuals underestimate the severity or frequency of the loss. Moral hazard created by disaster relief (floods) - wher...

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10 pages

Written in 2023/2024

Grade A+

QUINTER

random variable - variables whose outcomes are uncertain and can have different values how to develop probability distributions - 1) identify all possible outcomes 2) calculate probabilities for all possible outcomes collectively exhaustive - account for all possibilities mutually exclusive - define so that the occurrence of one outcome precludes the occurrence of any other discrete distribution - when variables are integers, that is, distinct values (frequency) continuous distribution - ...

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11 pages

Written in 2023/2024

Grade A+

QUINTER

Handlers of RM before RM Dept. - Finance dept - small org risk manager - med org cro - large org who coined the term Risk Management? - Prof. Wayne Snider of Temple University STEPS IN THE RM PROCESS - 1. Identify the Exposure to Loss*** 2. Evaluate the Exposure to Loss 3. Identify Possible Alternatives 4. Select from Among the Alternatives 5. Implementation of the Chosen Option 6. Periodically Re-Evaluate the Chosen Strategies

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5 pages

Written in 2023/2024

Grade A+

QUINTER

Which describes the immediate cause of a loss - peril Carly is involved in a 3 car auto accident. Which risk is this an example of - particular risk risk prevention and risk reduction are both included in which of the following - risk (loss) control which is a common pre-loss objective - economy which is the last step in the risk management process (but is often done first)? - review and evaluate risk reduction methods are best applied to - high severity losses hazards may be categorized...

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9 pages

Written in 2023/2024

Grade A+

QUINTER

Risk - is the uncertainty about future losses or outcomes Probability - likelihood that an outcome or event will occur Pure Risk - is a chance of loss or no loss but no chance for gain; always undesirable Good Example of Pure Risk? - You own a building, it will either burn or not burn, either way your financial responsibility remains constant. Pay the for the up keep of the building or suffer financial loss if building burns.

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8 pages

Written in 2023/2024

Grade A+

QUINTER

free market fails to protect consumer interests requiring the government to find appropriate ways to protect us from ourselves; rewards those people who understand consumer behavior and can exploit consumer's weaknesses In a world dominated by rational behavior... the government could focus on externalities and focus less on consumers Jeremy Bentham (19th century) Urged politicians to design policies that maximized peoples happiness, increasing their pleasures and reducing their pains...

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12 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

Which describes the immediate cause of a loss peril Carly is involved in a 3 car auto accident. Which risk is this an example of particular risk risk prevention and risk reduction are both included in which of the following risk (loss) control which is a common pre-loss objective economy which is the last step in the risk management process (but is often done first)? review and evaluate risk reduction methods are best applied to high severity losse

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13 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

random variablevariables whose outcomes are uncertain and can have different values how to develop probability distributions1) identify all possible outcomes 2) calculate probabilities for all possible outcomes collectively exhaustiveaccount for all possibilities mutually exclusivedefine so that the occurrence of one outcome precludes the occurrence of any other discrete distributionwhen variables are integers, that is, distinct values (frequency) continuous distributionwhen any value un...

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10 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

Who uses decision making ?Individuals Organizations Government Individuals use expected ____Utility Organizations use expected ____Value What entity is able to take on risk regardless of the rewardGov't What is one of the big problems we have with modeling how decisions are made?Decisions are made is that they do not explicitly account for biases on the part of the decision maker

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14 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

BPP Additional Coverages and Coverage Extensions: - ANSWER provides several supplemental coverages in addition to the basic coverages, coverage extensions: apply only if at least 80% coinsurance or values reporting is shown in the declarations Debris Removal: - ANSWER part of policy limit plus $10K, limited to 25% of covered loss plus $10,000, Preservation of Property: - ANSWER part of policy limit, no sublimit, Fire Department Service Charge: - ANSWER in addition to policy limit, $1,00...

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5 pages

Written in 2023/2024

Grade A+

suedocs

Types of Private Insurers - ANSWER Stock Insurers Mutual Insurers Reciprocal exchanges Lloyd's of London Blue Cross Blue Shield plans Health maintenance organizations (HMOs) Stock Insurers - ANSWER Owned by Stockholders, publicly traded and goal is to profit shareholders Mutual Insurers - ANSWER Owned by policyholders, and goal is to be there for their policy holders Fraternal Insurer - ANSWER insures members of a private nonprofit organization (religious or social) Llyod's of...

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7 pages

Written in 2023/2024

Grade A+

suedocs

Problems with the health care system in the United States that led to implementation of the Affordable Care Act included 1. Rising healthcare expenditures 2.Considerable waste and inefficiency in the healthcare system A) I only B) II only C) both I and II D) neither I nor II - ANSWER C) both I and II All of the following are historical reasons for the increase in health care expenditures in the U.S. EXCEPT A) cost insulation because of third-party payers. B) employer-sponsored hea...

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53 pages

Written in 2023/2024

Grade A+

suedocs

chapter 5 - ANSWER chapter 5 principle of indemnity - ANSWER The insurer agrees to pay no more than the actual amount of the loss purpose of principle of indemnity - ANSWER -to prevent the insured from profiting from a loss -to reduce moral hazard in property insurance, indemnification is based on the _____ - ANSWER actual cash value methods of determining actual cash value - ANSWER -replacement cost less depreciation -fair market value -broad evidence rule actual cash value - ...

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14 pages

Written in 2023/2024

Grade A+

suedocs

What are the 2 basic forms of an insuring agreement - ANSWER 1. named perils coverage: only perils specifically named in the policy are covered 2. open-perils: all losses are covered except losses specifically excluded Describe the 3 major types of exclusions - ANSWER 1. excluded perils (flood, intentional act) 2. excluded losses (a professional liability) 3. excluded property (pets) Describe the miscellaneous provision - ANSWER cancellation, subrogation, grace period, misstatement of a...

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9 pages

Written in 2023/2024

Grade A+

suedocs

What is the Principle of Indemnity? - ANSWER - States that the insurer agrees to pay no more than the actual amount of the loss; stated differently, the insured should not profit from a loss. - Insurance is a contract of indemnity. What are the methods used by courts to determine actual cash value? - ANSWER - Replacement Cost Less Depreciation - Fair Market Value - Broad Evidence Rule What are the exceptions to Actual Cash Value? - ANSWER Replacement cost insurance, life insuranc...

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18 pages

Written in 2023/2024

Grade A+

suedocs

RMI 4292 Final Exam Questions and Answers

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12 pages

Written in 2023/2024

Grade A+

suedocs