(TEST) Quiz on Risk Management for Logistics

What is the main focus of the course BBDS3074?

• Biology

• History

• Risk Management for Logistics

• Mathematics

What is one of the basic characteristics of insurance?

• It guarantees no losses.

• It is always profitable.

• It involves pooling of losses.

• It is a type of gambling.

What does the law of large numbers help insurers do?

• Eliminate risks.

• Reduce the number of clients.

• Increase premiums.

• Predict losses accurately.

Which of the following is a characteristic of an ideally insurable risk?

• The loss must be intentional.

• The loss must be catastrophic.

• The loss must be predictable.

• The loss must be accidental and unintentional.

What can lead to higher-than-expected losses for insurers?

• Adverse selection

• Low premiums

• Government regulations

• High competition

How does insurance differ from gambling?

• Insurance is based on risk pooling.

• Gambling is always profitable.

• Insurance guarantees a win.

• Gambling is safer.

What is one of the major types of private insurance companies in the U.S.?

• Space insurance

• Pet insurance

• Travel insurance

• Health insurance

What is a social benefit of insurance?

• Indemnification for loss

• Increased fraud

• Less investment

• Higher premiums

What is a cost of insurance to society?

• Indemnification

• Loss prevention

• Cost of doing business

• Reduction of worry

What is one method insurers use to control adverse selection?

• Increasing premiums

• Offering more coverage

• Reducing claims

• Ignoring risks