Planning Personal Finance - Insurance 1

People tend to stress the negative side or downside of risk by relating it to a chance of injury, harm or loss, is this what risk is all about?

• Yes
• Sometimes
• Not always
• No

Risk is associated with all except one:

• certainty
• chance
• probability
• uncertainty

Risk as it pertains to insurance implies the uncertainty of economic loss

• False

• Somewhat

• True

• Not necessarily

Fundamental Risk does not arise out of the nature of the society one lives in or some physical occurrence beyond human control.

• False
• True
• Partially true
• Not applicable

Fundamental risk often has some element of human control

• not applicable
• false
• true
• partially true

What is specific risk?

• Physical occurrence beyond human control

• It is an ndividual events and its effects are felt locally

• Risk that arise out of the nature of the society one lives in

• some physical occurrence beyond human control

Specific risk is also referred to as particular risk

• False
• Incorrect
• Not true
• True

Pure risks are insurable

• True
• Sometimes
• False
• Depends on the situation

Pure risk leave the insured with two likely outcomes

• gain or no gain
• profit or no profit
• benefit or no benefit
• loss or breakeven

Speculative risk leave the insured with a

• only potential gain
• only potential loss
• no potential gain or loss
• potential gain or loss