Insurance and Risk Management

11. The possibility that actual results may differ from predicted results is known as ______________.

1. Risk.
2. Uncertainty.
3. Peril.
4. Hazards.

View answer

12. The success of whole process of risk management depends on its ______________.

1. Identification
2. Risk analysis
3. Assessment of risk
4. Evaluation of risk

View answer

13. That which covers the cost of self insurance, loading in insurance premiums and enforcing hedging arrangements is ______________.

1. Cost of Loss Financing
2. Cost of Control of loss
3. Cost of Residual Uncertainty
4. Cost of Internal Risk Reduction

View answer

14. If RMIS has poor system documentation then the remedy is to provide ______________.

1. solid vendor account team
2. internal access to system expert
3. assessment in proper manner
4. clear and comprehensive specifications

View answer

15. The risk management can be done by ______________.

1. Insurance
2. Hedging
3. Derivatives
4. All of the above

View answer

16. The installation of heat or smoke activated sprinkler systems that are designed to minimize fire damage in the outbreak of a fire is an example of ______________.

1. Loss prevention
2. Loss reduction
3. Hedging
4. Insurance

View answer

17. ______________ is the extra payment done for administrative and capital cost.

1. Premium
2. Premium loading
3. Interest
4. Contingency

View answer

18. Transfer of rights and remedies of the insured to the insurer after indemnity has been effected is called ______________.

1. Insurable interest
2. Subrogation
3. Proximate clause
4. Money back policy

View answer

19. The principle of indemnity is applicable to ______________ only.

1. Life Insurance
2. Personal accident insurance
3. Proximate Cause
4. Property insurance

View answer

20. ______________ is those terms, which are implied in every contract of marine insurance unless they are expressly excluded.

1. Guarantee
2. Express Warranties
3. Implied Warranties
4. Waiver Clause

View answer