Chapter 1 uCanPass life insurance
Which of the following is NOT a characteristics of pure risk. - answerA: The loss must
be a catastrophic
B: The Loss must be due to change
C:The loss must be measurable in dollars.
D:The loss exposure must be Large
Answer: A: The loss must be Catastrophic
A tornado that destroys property would be an example of which of the following? -
answerA Peril
.. A peril is the cause off loss insured against in an insurance policy
An individual was involved in a head-on collision while driving home one day. His
injuries were not serious, and he recovered. however he decided that in order to never
be involved in another accident, he would never drive or ride in a car again. which
method of risk management does this describe - answerAvoidance
risk management by which a person tries to eliminate risk of loss by avoiding any
exposure
Which insurance principle states that if a policy allows for greater compensation than
the financial loss incurred, the insured may only receive benefits for the amount lost? -
answerindemnity
insured can only collect the amount loss even if policy is written with greater benefits
limits
which of the following is not a goal of risk retention? - answerTo minimize the insured's
level of liability in the event of loss1
To achieve the profitable distribution of exposures - answerPreferred risks and poor
risks are balanced, with average risks in the middle
A situation in which a person can only lose or have no change represents - answerA
Pure risk
Pure risk ...
refers to situations that can only result in a loss or no change. Pure risk is the only type
insurance companies are willing to accept.
the legal definition of person would not include which of the following? - answerfamily
Which of the following is NOT a characteristics of pure risk. - answerA: The loss must
be a catastrophic
B: The Loss must be due to change
C:The loss must be measurable in dollars.
D:The loss exposure must be Large
Answer: A: The loss must be Catastrophic
A tornado that destroys property would be an example of which of the following? -
answerA Peril
.. A peril is the cause off loss insured against in an insurance policy
An individual was involved in a head-on collision while driving home one day. His
injuries were not serious, and he recovered. however he decided that in order to never
be involved in another accident, he would never drive or ride in a car again. which
method of risk management does this describe - answerAvoidance
risk management by which a person tries to eliminate risk of loss by avoiding any
exposure
Which insurance principle states that if a policy allows for greater compensation than
the financial loss incurred, the insured may only receive benefits for the amount lost? -
answerindemnity
insured can only collect the amount loss even if policy is written with greater benefits
limits
which of the following is not a goal of risk retention? - answerTo minimize the insured's
level of liability in the event of loss1
To achieve the profitable distribution of exposures - answerPreferred risks and poor
risks are balanced, with average risks in the middle
A situation in which a person can only lose or have no change represents - answerA
Pure risk
Pure risk ...
refers to situations that can only result in a loss or no change. Pure risk is the only type
insurance companies are willing to accept.
the legal definition of person would not include which of the following? - answerfamily
