UGA RMIN 4000 EDMUNDS EXAM 1 ACTUAL
2026 QUESTIONS AND 100% CORRECT
ANSWERS
Save
Practice questions for this set
Learn 1 /7 Study with Learn
graph of risks with axes of frequency and severity
Choose an answer
1 risk 2 moral hazard
3 loss severity 4 risk map
Don't know?
Terms in this set (90)
risk uncertainty concerning the occurrence of a loss
(or calculated possibility of a negative outcome)
, loss exposure any situation where a loss is possible (does not
have to occur)
loss frequency how often a loss occurs within a specific period
(probability)
formula to find frequency # of losses/# of exposures
loss severity how much does a loss cost when it occurs (a
house fire costs $x)
formula to find severity total losses in dollars/# of losses
Peril cause of loss (fire, windstorm, flood)
Hazard an event that creates or increases the chance of a
loss without causing
At what probability is risk highest? 0.5
Do risk and chance of loss mean No, chance of loss is the probability that an event
the same? will occur
What are the four types of hazards? Physical, Moral, Morale, and Legal
Physical hazard a physical condition that increases the frequency
or severity of loss
2026 QUESTIONS AND 100% CORRECT
ANSWERS
Save
Practice questions for this set
Learn 1 /7 Study with Learn
graph of risks with axes of frequency and severity
Choose an answer
1 risk 2 moral hazard
3 loss severity 4 risk map
Don't know?
Terms in this set (90)
risk uncertainty concerning the occurrence of a loss
(or calculated possibility of a negative outcome)
, loss exposure any situation where a loss is possible (does not
have to occur)
loss frequency how often a loss occurs within a specific period
(probability)
formula to find frequency # of losses/# of exposures
loss severity how much does a loss cost when it occurs (a
house fire costs $x)
formula to find severity total losses in dollars/# of losses
Peril cause of loss (fire, windstorm, flood)
Hazard an event that creates or increases the chance of a
loss without causing
At what probability is risk highest? 0.5
Do risk and chance of loss mean No, chance of loss is the probability that an event
the same? will occur
What are the four types of hazards? Physical, Moral, Morale, and Legal
Physical hazard a physical condition that increases the frequency
or severity of loss
