FNCE 2820 EXAM STUDY SET @
2024-2025
Offense - Answer Asset accumulation, lifetime income
Defense - Answer Protection, estate planning
Four key areas of protection - Answer Property and casualty insurance, health care
insurance, life insurance, wills and trusts
Risk managment objectives - Answer Guarding against catastrophic loss, Replacing
income, if disabled, Mitigate healthcare costs, Providing for family in event of premature
death, Protection from a liability lawsuit, Alleviate family from long-term care duties
Risk is the probability of a loss for these three things - Answer Financial, injury, property
2 Key Factors of Risk - Answer Frequency and Severity
Absolute severity - Answer
Relative severity - Answer
Risks of loss can be both... - Answer frequent and infrequent
The combination of these two things determine the risk mitigation approach - Answer
probability, severity
Four main risk mitigation techniques - Answer Avoidance and Prevention, Retention -
Conscious and Unaware, Transfer - Insurance, Sharing and Reduction - Pooling of Risk
Multi-line Homeowner's Policy - Answer Medical payments, property loss, liability loss
Key Provisions for a Homeowners - Answer -Loss Sharing - Deductibles and
Co-insurance (generally 80% of coverage)(co-insurance rate based on coverage)
-Named Insurance Perils
-Open Insurance Perils
-Standard HO Forms
-Provisions and Riders
-Coverages and Exclusions
Property insurance coverage limits - Answer Amount of coverage and riders available to
increase face amount
2024-2025
Offense - Answer Asset accumulation, lifetime income
Defense - Answer Protection, estate planning
Four key areas of protection - Answer Property and casualty insurance, health care
insurance, life insurance, wills and trusts
Risk managment objectives - Answer Guarding against catastrophic loss, Replacing
income, if disabled, Mitigate healthcare costs, Providing for family in event of premature
death, Protection from a liability lawsuit, Alleviate family from long-term care duties
Risk is the probability of a loss for these three things - Answer Financial, injury, property
2 Key Factors of Risk - Answer Frequency and Severity
Absolute severity - Answer
Relative severity - Answer
Risks of loss can be both... - Answer frequent and infrequent
The combination of these two things determine the risk mitigation approach - Answer
probability, severity
Four main risk mitigation techniques - Answer Avoidance and Prevention, Retention -
Conscious and Unaware, Transfer - Insurance, Sharing and Reduction - Pooling of Risk
Multi-line Homeowner's Policy - Answer Medical payments, property loss, liability loss
Key Provisions for a Homeowners - Answer -Loss Sharing - Deductibles and
Co-insurance (generally 80% of coverage)(co-insurance rate based on coverage)
-Named Insurance Perils
-Open Insurance Perils
-Standard HO Forms
-Provisions and Riders
-Coverages and Exclusions
Property insurance coverage limits - Answer Amount of coverage and riders available to
increase face amount
