CAIB 1 Practice Questions With
Complete Solutions
Consideration is... | |
a. The law of insurance
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b. A promise between parties
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c. A contract's binding force
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d. An exchange of something of value - ANSWER✔✔✔-d. An exchange
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of something of value
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A stock company is...
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a. A company that invests in other companies
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b. A company owned by stockholders who provide the capital to start
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and run the company
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c. Is owned by customers of the company
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d. A company that owns livestock - ANSWER✔✔✔-b. A company owned
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by stockholders who provide the capital to start and run the company
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,The difference between pure and speculative risk is...
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a. Speculative risk is insurable but pure risk is not
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b. Speculative risk means that there is a chance to gain or lose whereas
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one can only lose with pure risk
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c. Speculative risk means that there is only the chance to lose whereas
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pure risk means you have a chance to win too
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d. Speculative risk is a term invented by marine insurance companies in
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1864 - ANSWER✔✔✔-b. Speculative risk means that there is a chance
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to gain or lose whereas one can only lose with pure risk
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A legally enforceable agreement between 2 or more parties is defined
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as... |
a. A contract
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b. An agreement
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c. A will
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d. A contract of consideration - ANSWER✔✔✔-a. A contract
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What are the 4 methods of dealing with risk? - ANSWER✔✔✔-
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Avoidance, |
control, |
, retention, |
transfer
A reduction in value is called a...
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a. Loss
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b. Unlucky situation
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c. Claim
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d. Transfer - ANSWER✔✔✔-a. Loss
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What elements must be present to constitute a legal contract?
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a. Parties to the contract, the contract itself, consideration
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b. Parties to the contract, a written document, consideration, and legal
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purpose |
c. Agreement, consideration, legality of object, legal capacity, genuine
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intention |
d. Competent parties, consideration, warranty, and legal purpose -
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ANSWER✔✔✔-c. Agreement, consideration, legality of object, legal
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capacity, genuine intention
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Complete Solutions
Consideration is... | |
a. The law of insurance
| | | | |
b. A promise between parties
| | | | |
c. A contract's binding force
| | | | |
d. An exchange of something of value - ANSWER✔✔✔-d. An exchange
| | | | | | | | | | |
of something of value
| | |
A stock company is...
| | | |
a. A company that invests in other companies
| | | | | | | |
b. A company owned by stockholders who provide the capital to start
| | | | | | | | | | | |
and run the company
| | | |
c. Is owned by customers of the company
| | | | | | | |
d. A company that owns livestock - ANSWER✔✔✔-b. A company owned
| | | | | | | | | |
by stockholders who provide the capital to start and run the company
| | | | | | | | | | | |
,The difference between pure and speculative risk is...
| | | | | | | |
a. Speculative risk is insurable but pure risk is not
| | | | | | | | | |
b. Speculative risk means that there is a chance to gain or lose whereas
| | | | | | | | | | | | | |
one can only lose with pure risk
| | | | | | |
c. Speculative risk means that there is only the chance to lose whereas
| | | | | | | | | | | | |
pure risk means you have a chance to win too
| | | | | | | | | |
d. Speculative risk is a term invented by marine insurance companies in
| | | | | | | | | | | |
1864 - ANSWER✔✔✔-b. Speculative risk means that there is a chance
| | | | | | | | | | |
to gain or lose whereas one can only lose with pure risk
| | | | | | | | | | |
A legally enforceable agreement between 2 or more parties is defined
| | | | | | | | | | |
as... |
a. A contract
| | |
b. An agreement
| | |
c. A will
| | |
d. A contract of consideration - ANSWER✔✔✔-a. A contract
| | | | | | | |
What are the 4 methods of dealing with risk? - ANSWER✔✔✔-
| | | | | | | | | |
Avoidance, |
control, |
, retention, |
transfer
A reduction in value is called a...
| | | | | | |
a. Loss
| |
b. Unlucky situation
| | |
c. Claim
| |
d. Transfer - ANSWER✔✔✔-a. Loss
| | | |
What elements must be present to constitute a legal contract?
| | | | | | | | | |
a. Parties to the contract, the contract itself, consideration
| | | | | | | | |
b. Parties to the contract, a written document, consideration, and legal
| | | | | | | | | | |
purpose |
c. Agreement, consideration, legality of object, legal capacity, genuine
| | | | | | | | |
intention |
d. Competent parties, consideration, warranty, and legal purpose -
| | | | | | | | |
ANSWER✔✔✔-c. Agreement, consideration, legality of object, legal
| | | | | | |
capacity, genuine intention
| |
