BUSSHART KM - RISK MANAGEMENT & INSURANCE

What is the process of anticipating possible problems and putting plans in place to cope with certain risks if they become real?

• Risk adjustment

• Risk management

• Risk tolerance

• Risk abatement

Insurance involves the transfer of what to a third party?

• Safety

• Time

• Cost

• Risk

What is the term used for a table of statistical data that shows the likelihood of a risk, such as death, occurring to an individual in a certain profile?

• Risk aversion

• Actuarial table

• Death table

• Statistical table

What is the name given to a policy that combines all of a business's insurance policies?

• Business owner's policy

• Combined policy

• Aggregate policy

• Total policy

What do we call the dollar amount calculated by the insurance company to represent the cost of replacing your property with new items of the same type and quality?

• Replacement cost

• Risk cost

• Substitution cost

• Cash value

Insurance policies work for insurers because they help do what to their risks?

• Accept

• Mitigate

• Spread

When a business experiences a financial loss (like a fire), they will not get the financial support they need from their insurance company until they file a:

• Tax return

• Claim

• Complaint with fire marshal

True or False: A person's occupation has an impact on their monthly health insurance premiums.

• T

• F

True or False: A person's age has an impact on their monthly health insurance premiums.

• T

• F

When a business looks to file a claim to recoup the loss of property for a business, they typically choose which option?

• Replacement cost option

• Cash value option

• Either of the options listed above

• Neither of the options listed above