RMI 3011 Exam 1 Jones Question and
answers already passed
Risk - correct answer ✔Uncertainty concerning the occurrence of loss
Uncertainty - correct answer ✔Outcome must be in doubt and at least one
outcome is is undesirable
Objective risk (Degree of risk) - correct answer ✔the relative variation of
actual loss from expected loss
it is measurable
Subjective risk (perceived risk) - correct answer ✔uncertainty based on a
person's mental condition or state of mind
Indemnification - correct answer ✔returning you to the state previous to the
situation involving risk
Objective probability - correct answer ✔can be calculated, actuarial science
Subjective probability - correct answer ✔the individual's personal estimate of
the chance of loss
Peril - correct answer ✔Cause of loss, proximate clause (how something
happened)
Hazard - correct answer ✔Condition which increases probability of loss (why,
contributing factors)
,Types of Hazards - correct answer ✔Physical
Moral (evil tendencies)
Attitudinal (Morale)
Legal
Pure risk - correct answer ✔exists everywhere in nature, loss or no loss
Speculative risk - correct answer ✔gain is possible, action required, risk is
created
ex: gambling
diversifiable risk - correct answer ✔A risk that affects only some individuals,
businesses, or small groups.
nondiversifiable risk - correct answer ✔a risk that affects the entire economy
or large numbers of persons or groups within the economy
Enterprise risk - correct answer ✔pure/speculative risk
strategic risk
operational risk
financial risk
Systemic risk - correct answer ✔affects everyone
ex: covid
Types of personal risks - correct answer ✔- Premature death
, - Inadequate retirement income
- Insufficient savings/assets
- Aged poverty
- Poor health
-Unemployment
- Alcohol and drug addiction
Premature death - correct answer ✔the death with outstanding unfulfilled
financial obligations
Aged Poverty - correct answer ✔not saving enough for later in life
Personal losses - correct answer ✔earned income goes down
Extra expenses (could be because unexpected health issues)
Deletion of financial assets
real property - correct answer ✔buildings and structures
Personal property - correct answer ✔things like jewelry and cars
Direct loss - correct answer ✔Fire, hurricane or tornado
indirect or consequential loss - correct answer ✔a financial loss that results
indirectly from the occurrence of a direct physical damage or theft loss (ex:
answers already passed
Risk - correct answer ✔Uncertainty concerning the occurrence of loss
Uncertainty - correct answer ✔Outcome must be in doubt and at least one
outcome is is undesirable
Objective risk (Degree of risk) - correct answer ✔the relative variation of
actual loss from expected loss
it is measurable
Subjective risk (perceived risk) - correct answer ✔uncertainty based on a
person's mental condition or state of mind
Indemnification - correct answer ✔returning you to the state previous to the
situation involving risk
Objective probability - correct answer ✔can be calculated, actuarial science
Subjective probability - correct answer ✔the individual's personal estimate of
the chance of loss
Peril - correct answer ✔Cause of loss, proximate clause (how something
happened)
Hazard - correct answer ✔Condition which increases probability of loss (why,
contributing factors)
,Types of Hazards - correct answer ✔Physical
Moral (evil tendencies)
Attitudinal (Morale)
Legal
Pure risk - correct answer ✔exists everywhere in nature, loss or no loss
Speculative risk - correct answer ✔gain is possible, action required, risk is
created
ex: gambling
diversifiable risk - correct answer ✔A risk that affects only some individuals,
businesses, or small groups.
nondiversifiable risk - correct answer ✔a risk that affects the entire economy
or large numbers of persons or groups within the economy
Enterprise risk - correct answer ✔pure/speculative risk
strategic risk
operational risk
financial risk
Systemic risk - correct answer ✔affects everyone
ex: covid
Types of personal risks - correct answer ✔- Premature death
, - Inadequate retirement income
- Insufficient savings/assets
- Aged poverty
- Poor health
-Unemployment
- Alcohol and drug addiction
Premature death - correct answer ✔the death with outstanding unfulfilled
financial obligations
Aged Poverty - correct answer ✔not saving enough for later in life
Personal losses - correct answer ✔earned income goes down
Extra expenses (could be because unexpected health issues)
Deletion of financial assets
real property - correct answer ✔buildings and structures
Personal property - correct answer ✔things like jewelry and cars
Direct loss - correct answer ✔Fire, hurricane or tornado
indirect or consequential loss - correct answer ✔a financial loss that results
indirectly from the occurrence of a direct physical damage or theft loss (ex:
