INS200 - QUIZ 1 (MAR-JULY 2020)

Risk is the chance of loss

• True

• False

Hazard is ___________________

• a condition that increases the chance of loss.

• a condition that decreases the chance of loss.

• a reduction or disappearance of economic value.

• an uncertainties

Loss is _________________

• a physical condition that increases the possibility of loss.

• a condition that causes or increases the likelihood of a loss.

• a reduction or disappearance of economic value.

• a possibility of a loss.

Direct cause of the loss is refers to ________________

• physical hazard

• direct loss

• peril

• risk

Expenses that incurred as a result of loss caused by fire also known as _______________________.

• liability risk.

• extra expenses.

• indirect loss.

• loss.

________________ is a type of probability which is determined when the total number of possible events is known

• Jugdemental.

• Empirical.

• A priori.

• theories.

Morale hazard is ____________

• a character defect in an individual that increases the chance of loss.

• a physical condition that increases the possibility of loss.

• a character defect in an individual that increases the chance of loss with the knowledge that insurance exists.

Particular risk is a risk that affects particular individuals, such as __________________

• flood or typhoon.

• robbery or vandalism.

• investments.

Property destruction due to forces of nature is uninsurable because it is categorised as _____________________ risk.

• pure

• fundamental

• speculative

• financial

Pure risk is a _____________

• risk in which there is only possibility of loss or no loss.

• risk in which there is only possibility of loss.

• risk in which there is possibility of loss , profit or no loss.

• there is no possibility of loss.