UGA RMIN 4000 Edmunds Exam 1 / Questions
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uncertainty concerning the occurrence of a loss (or calculated possibility of a
negative outcome)
Choose matching term
the loss must be determinable and
1 loss exposure 2
measurable.
3 risk 4 formula to find severity
Don't know?
Terms in this set (90)
loss exposure uncertainty concerning
any situation where athe occurrence
loss of a(does
is possible loss (or
not have to
risk
occur) possibility of a negative outcome)
calculated
, 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 0.5
highest?
Do risk and chance of loss No, chance of loss is the probability that an event will occur
mean the same?
What are the four types of Physical, Moral, Morale, and Legal
hazards?
Physical hazard a physical condition that increases the frequency or severity of
loss
moral hazard dishonesty or character defects in an individual that
increase the frequency or severity of loss (using a hammer
to create "hail" damage to your roof to get a claim)
Morale (Attitudinal) carelessness or indifference to a loss, which increases the
Hazard frequency or severity of a loss (leaving car unlocked leading
to theft)
Legal Hazard characteristics of the legal system or regulatory
environment that increase the frequency or severity of
losses (a jury in one district may be more sympathetic than
others)
with Certified Solutions.
Stretch your brain before your first study session
Learn / Study with Learn
uncertainty concerning the occurrence of a loss (or calculated possibility of a
negative outcome)
Choose matching term
the loss must be determinable and
1 loss exposure 2
measurable.
3 risk 4 formula to find severity
Don't know?
Terms in this set (90)
loss exposure uncertainty concerning
any situation where athe occurrence
loss of a(does
is possible loss (or
not have to
risk
occur) possibility of a negative outcome)
calculated
, 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 0.5
highest?
Do risk and chance of loss No, chance of loss is the probability that an event will occur
mean the same?
What are the four types of Physical, Moral, Morale, and Legal
hazards?
Physical hazard a physical condition that increases the frequency or severity of
loss
moral hazard dishonesty or character defects in an individual that
increase the frequency or severity of loss (using a hammer
to create "hail" damage to your roof to get a claim)
Morale (Attitudinal) carelessness or indifference to a loss, which increases the
Hazard frequency or severity of a loss (leaving car unlocked leading
to theft)
Legal Hazard characteristics of the legal system or regulatory
environment that increase the frequency or severity of
losses (a jury in one district may be more sympathetic than
others)
