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Examen

RMI 201 Exam UPDATED Exam Questions and CORRECT Answers

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RMI 201 Exam UPDATED Exam Questions and CORRECT Answers insurable risk - CORRECT ANSWER - 1) risk that is faced by a large number of people and for which the amount of the loss can be predicted; 2) risk which is accidental or unintentional; 3) Loss must be measurable; 4) cannot be catastrophic; 5) loss is calculable; 6) accessible premium rates worker's compensation - CORRECT ANSWER treatment for workers injured on the job Speculative Risk - CORRECT ANSWER Pure risk - CORRECT ANSWER - health insurance plan providing - Risk could have loss or gai

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MGRADES


RMI 201 Exam UPDATED Exam
Questions and CORRECT Answers
insurable risk - CORRECT ANSWER - 1) risk that is faced by a large number of people
and for which the amount of the loss can be predicted; 2) risk which is accidental or
unintentional; 3) Loss must be measurable; 4) cannot be catastrophic; 5) loss is calculable; 6)
accessible premium rates


worker's compensation - CORRECT ANSWER - health insurance plan providing
treatment for workers injured on the job


Speculative Risk - CORRECT ANSWER - Risk could have loss or gain.



Pure risk - CORRECT ANSWER - a risk that presents the chance of loss but no
opportunity for gain


strategic risk - CORRECT ANSWER - risks regarding the firm's financial goals and
objectives


enterprise risk - CORRECT ANSWER - encompasses all major risks faced by a business
firm, which include: pure risk, speculative risk, strategic risk, operational risk, and financial risk


Reinsurance - CORRECT ANSWER - An insurance company does not want to assume all
the risk for their company. They often purchase insurance from other insurance companies. The
shifting of an insured risk from one insurance company to another is called...


Underwriting - CORRECT ANSWER - the process of selecting, classifying, and pricing
applicants for insurance


coinsurance - CORRECT ANSWER - a provision under which both the insured and the
insurer share the covered losses

,MGRADES




liability insurance - CORRECT ANSWER - bodily and property payment to others if a
member of the insured household accidentally causes harm to other people or property


chance of loss - CORRECT ANSWER - probability of risk



TRIA - CORRECT ANSWER - Terrorism Risk Insurance Act



Insurance applied outside the U.S - CORRECT ANSWER - not liable - no coverage;
example war i Ukraine


non-insurance - CORRECT ANSWER - alternative insurance options outside insurance
company: 1) self insurance; 2) Risk retention; 3) captive insurance; 4) warranties


captive insurance - CORRECT ANSWER - an insurer owned by a parent firm for the
purpose of insuring the parent firm's loss exposures


Adverse selection - CORRECT ANSWER - people who are higher risk of loss seek
insurance at standard rates.


Non-diversified risk - CORRECT ANSWER - a risk which is not spread out



Diversified - CORRECT ANSWER - risk effecting a large amount of people, spread out
over a large population


objective risk - CORRECT ANSWER - not opinionated: data and evidence



characteristics of insurance - CORRECT ANSWER - - Pooling of losses
- Risk transfer

, MGRADES


- Indemnification
- Payment of fortuitous losses


risk manager - CORRECT ANSWER - identifying risks for the company and to determine
how likely a risk is, as well as its severity of impact on the company.


underwriter - CORRECT ANSWER - analyzes risk, decide if should insure good or bad
risk


pooling assests - CORRECT ANSWER - sharing losses inside a group


Sally started a business. Starting a new business is risky. Sally wants to make a profit. What type
of risk is sally's business? - CORRECT ANSWER - Speculative - don't know if the
business will succeed or fail.


why TRIA - CORRECT ANSWER - TRIA protects people and business alike by
accepting liability of specific losses in the event of a terrorist attack. This included property loss,
physical loss, and financial loss like workers compensation.


liability risk - CORRECT ANSWER - relates to harm or injury to other people or their
property because of your actions


hazard - CORRECT ANSWER - creates potential for loss



steps in risk management - CORRECT ANSWER - 1. Identify possible risks
2. Analyze risks
3. Act to reduce risks
4. Evaluate steps taken

Información del documento

Subido en
10 de mayo de 2025
Número de páginas
20
Escrito en
2024/2025
Tipo
Examen
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