PFM8 Insurance Risk Management

What is risk in the context of insurance and risk management?

• Ability to increase profits

• Spreading financial risks across markets

• The assessment of potential financial impact from events

• Both b and c

Who is responsible for minimizing an organization's risk factors?

• Insurance companies

• Risk management team

• Legal department

• Marketing department

What is the most common type of insurance protection people avail?

• Theft protection

• Health insurance

• Fire loss protection

• Flood insurance

Effective loss control impacts which two factors?

• Premium cost and profit margins

• Availability and affordability of insurance

• Employee benefits and salary

• Customer satisfaction and loyalty

What training should employees receive to help prevent fire losses?

• Fire safety

• Customer service

• Office equipment usage

• Computer skills

How often should fire extinguishers be serviced and tagged?

• Every month

• Every quarter

• Annually

• Never

What should you regularly check as part of fire safety in an office?

• Water pipes

• Smoke detectors

• Paint quality

• Office desks

What percentage of nonresidential fires is often caused by faulty wiring?

• A small percentage

• A moderate percentage

• A large percentage

• None

Which building feature helps to prevent the spread of fire?

• Glass windows

• Fire-resistant building materials

• Decorative lights

• Open doors

What is one benefit of having the right insurance plan for an organization?

• Reduces profits

• Limits risks and lawsuits

• Lowers employee wages

• Eliminates all risk