Risk Management

It is not possible to protect yourself from the consequences of pure risk

• True

• False

Factories begin laying off workers during the decline period of the business cycle

• True

• False

The premiums for group plans are usually considerably higher than for individual plans.

• True

• False

Which of the following is an example of a speculative risk

• the chance that your house could catch on fire

• the possibility that you will have an accident while driving to school

• becoming sick with the flu

• placing a bet on a horse face

Generally, the higher the deductible, the lower the insurance premium

• True

• False

Economic risk may result in gain or loss because of changing economic conditions

• True

• False

In the business cycle, the trough is followed by recovery

• True

• False

You cannot buy insurance on a house you do not own

• True

• False

The three major insurable risks are pure, economic, and speculative

• True

• False

Essentially, insurance is a way to enrich policy holders

• True

• False