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Risk Mgt

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

These risk are random (can happen to anyone) and result in loss (no gain)

a)

Pure risk

b)

Speculative risk

c)

Economic risk

d)

Insurable risk

2.

What kind of risk on this type of example: Accidents resulting in physical injury and damage to property

a)

Pure risk

b)

Speculative risk

c)

Economic risk

d)

Insurable risk

3.

It is not accidental or random, and may result in either gain or loss, you cannot protect yourself from losses in a traditional manner.

a)

Speculative risk

b)

Pure risk

c)

Economic risk

d)

Insurable risk

4.

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

a)

Economic risk

b)

Pure risk

c)

Speculative risk

d)

Insurable risk

5.

It is a pure risk that is faced by large number of people and for which the amount of loss can be predicted.

a)

Insurable risk

b)

Pure risk

c)

Economic risk

d)

Speculative risk

6.

It is any financial interest in life or property such that, if the life or property were lost or harmed, the insured would suffer financially

a)

insurable interest

b)

Economic interest

c)

Pure interest

d)

Speculative interest

7.

What type of insurable risk that pertain to the chance of loss involving your income and standard of living.

a)

Personal risk

b)

Property risk

c)

Liability risk

d)

Automatic risk

8.

What type of insurable risk that pertain to the chance of loss or harm to personal or real property.

a)

Property risk

b)

Personal risk

c)

Liability risk

d)

Automatic risk

9.

This risk is a is the chance of loss that may occur when your errors of actions result in injuries to other or damages to their property..

a)

Liability risk

b)

Personal risk

c)

Property risk

d)

Automatic risk

10.

It means putting the policy holder back in the same financial condition he or she was is before the loss incurred.

a)

Indemnification

b)

Safe risk

c)

personal risk

d)

Financial risk

11.

It is an organized strategy for controlling financial loss from pure risks and insurable risks.

a)

Risk management

b)

Risk assessment

c)

Risk plan

d)

Risk avoidance

12.

A technique in handling risk, occurs when you buy insurance to cover financial losses.

a)

Risk Shifting

b)

Risk avoidance

c)

Risk reduction

d)

Risk assumption

13.

A technique in handling risk that lowers the chance for loss by not doing the activity that could result in a loss.

a)

Risk avoidance

b)

Risk Shifting

c)

Risk reduction

d)

Risk assumption

14.

A technique in handling risk,that lowers the chance of loss by taking measures to lessen the frequency or severity of losses that may occur.

a)

Risk reduction

b)

Risk assumption

c)

Risk shifting

d)

Risk avoidance

15.

It is the process of accepting the consequences of risk

a)

Risk Assumption

b)

Risk avoidance

c)

Risk reduction

d)

Risk shifting