Insurance and Risk Management

121. The premium implies ______________

  1. Consideration by Service
  2. Consideration by cash
  3. Consideration by Kind
  4. Speculative Cash
Correct answer: (B)
Consideration by cash

122. A risk manager should report to ______________

  1. Managing Director
  2. Company Secretary
  3. Supervisor
  4. General Manager
Correct answer: (C)
Supervisor

123. The Risk Evaluation breaks into two parts.They are ______________

  1. The cause of loss and its affects
  2. The probability of loss occurring and its severity
  3. The loss due to any reasons
  4. The risk and return
Correct answer: (B)
The probability of loss occurring and its severity

124. The condition for insurable interest is ______________.

  1. Loss should be sufficiently in monetary terms
  2. Loss potential should be sufficiently large
  3. Interest on the subject matter of the insurance
  4. Loss cannot be managed
Correct answer: (C)
Interest on the subject matter of the insurance

125. Having money available when it is needed is defined as the art of ______________.

  1. Financial management
  2. Risk management
  3. Contingency fund
  4. Surplus
Correct answer: (A)
Financial management

126. Risk management is concerned with ______________.

  1. Planning
  2. Arranging and controlling of activities
  3. Managing of funds
  4. Planning, arranging and controlling of activities
Correct answer: (D)
Planning, arranging and controlling of activities

127. In alike the risk of creditors and shareholders by High Capital Gearing ratio companies is ______________.

  1. Increased
  2. Decreased
  3. Government
  4. Management and Employees
Correct answer: (A)
Increased

128. That which are not independent parts of the whole risk management process are ______________.

  1. Risk Control and Risk Financing
  2. Risk Retention and Risk Analysis
  3. Risk Retention and Risk Financing
  4. Risk Analysis and Risk Control
Correct answer: (A)
Risk Control and Risk Financing

129. That which helps to determine the accuracy and relevance of risk at each stage to which an organization is exposed is known as ______________.

  1. Principle of Identification
  2. Principle of Risk Analysis
  3. Principle of Assessment Risk
  4. Principle of Corrective Decision
Correct answer: (B)
Principle of Risk Analysis

130. The cost of increased precautions and limits on risky activity to reduce the frequency and severity of accidents and losses is covered by ______________.

  1. Cost of Loss Financing
  2. Cost of Expected Losses
  3. Cost of Control of Loss
  4. Cost of Internal Risk Reduction
Correct answer: (C)
Cost of Control of Loss
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