Test Bank for Introduction to Risk Management and Insurance 10th Edition by Dorfman

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Test Bank for Introduction to Risk Management and Insurance 10th Edition by Dorfman
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https://testbanku.eu/Test-Bank-for-Introduction-to-Risk-Management-and-Insurance-10th
-Edition-by-Dorfmanr
1)rArPurerRiskrisrdefinedras:
A)ranreventrthatrofferrnoropportunityrforrfinancialrgain
B)rtherchancerarlossrwillroccur
C)rardiversifiablerrisk
D)rarcontingencyrthatrincreasesrtherchancerofrarloss
Answer:rrA
Diff:r1

2)rAllrtherfollowingrarerdirectrlossesrexcept:
A)rarcarrisrstolen
B)rarhousersuffersrfloodrdamage
C)ranrapartmentrmustrberrentedrafterrarhouserisrdestroyedrbyrfire
D)rarbusinessrlosesr$100,000rinrarlawrsuit
Answer:rrC
Diff:r1

3)rAllrtherfollowingrarerdirectrlossesrexcept:
A)rarhouserisrburglarized
B)rarstorerlosesr$200,000rinrsalesrbecauserarfirerclosesritrdownrforrtworweeks
C)rarcorporationrmustrpayr$1rmillionrinrransomrwhenritsrCEOrisrkidnapped
D)ranrdeliveryrtruckrneedsr$15,000rinrrepairsrafterrarcollision
Answer:rrB
Diff:r1

4)rWhichrofrtherfollowingrisrnotranrexamplerofrarCatastrophicrLossrEvent?
A)rHurricanerKatrina
B)rDeathrofrMichaelrJackson
C)rSeptemberr11,r2001rterrorrattacksr
D)r2004rTsunamirinrtherIndianrOcean
Answer:rrB
Diff:r1

5)rWhichrofrtherfollowingrisrnotrarmethodrofrprotectionrofrrisk?
A)rGrouprinsurancerplansr
B)rEmployeerbenefits
C)rSocialrinsurance
D)rHumanitarianraid
Answer:rrD
Diff:r2




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6)rDefectiverelectricalrwiringrthatrmayrleadrtorarfirerisranrexamplerofra:
A)rpurerrisk
B)rnon-diversifiablerrisk
C)rspeculativerrisk
D)rphysicalrhazard
Answer:rrD
Diff:r2

7)rRiskrPoolingrisranrexamplerof:
A)rarCatastrophicrLossrEvent
B)rdiversifyingrrisk
C)rarspeculaterrisk
D)rapplyingrtherrisk-returnrtrade-off
Answer:rrB
Diff:r2

8)rWhichrofrtherfollowingrisrarfalserstatement?
A)rRiskraverserpeoplerwillrpayranrinsurancerpremiumrthatrisrgreaterrthanrthermathematicallyrfairrcha
ncerofrlossrinrorderrtorrelieverthemselvesrofruncertainty.
B)rArriskrseekerrisrwillingrtorassumerrisk.
C)rThermathematicallyrfairrpricerforrinsurancerisrtherobjectiverriskrforrtherinsurerrmultipliedrbyrtherm
aximumrpossiblerloss.
D)rInsurancerisrneverrarmathematicallyrfairrtraderbecausertherinsurerraddsrseveralroperatingrandrothe
rrcostsrtorlossrcostsrwhenritrcalculatesrtherpremium.
Answer:rrD
Diff:r3

9)rWhichrofrtherfollowingrisrnotrarhazard?
A)rStoringronertonrofrdynamiterinrargarage
B)rBadrdietr(eatingrlotsrofrjunkrfood)
C)rSkatingronrthinrice
D)rGettingrshotraccidentallyrwhilerdeerrhunting
Answer:rrD
Diff:r2

10)rThercorrectrorderrofrtherstepsrinrtherRiskrManagementrProcessris:
A)rEstablishrGoals,rIdentifyrPotentialrLossrExposure,rMeasurerPotentialrLossrExposure,rChooserRis
krHandlingrTechniques,rImplementrTechniquesrandrMonitorrEffectiveness
B)rEstablishrGoals,rChooserRiskrHandlingrTechniques,rIdentifyrPotentialrLossrExposure,rMeasurerP
otentialrLossrExposure,rImplementrTechniquesrandrMonitorrEffectiveness
C)rEstablishrGoals,rChooserRiskrHandlingrTechniques,rMeasurerPotentialrLossrExposure,rIdentifyrP
otentialrLossrExposure,rImplementrTechniquesrandrMonitorrEffectiveness
D)rEstablishrGoals,rMeasurerPotentialrLossrExposure,rIdentifyrPotentialrLossrExposure,rChooserRis
krHandlingrTechniques,rImplementrTechniquesrandrMonitorrEffectiveness
Answer:rrA
Diff:r2


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