RIBO Exam UPDATED Exam Questions and CORRECT Answers
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Course
RIBO
Institution
RIBO
RIBO Exam UPDATED Exam Questions
and CORRECT Answers
What is Insurance? - Correct Answer- The undertaking by one person to indemnify another
person against loss or liability for loss in respect of a certain risk or peril to which the object
of insurance may be exposed.
OR
To pay a sum of m...
RIBO Exam UPDATED Exam Questions
and CORRECT Answers
What is Insurance? - Correct Answer- The undertaking by one person to indemnify another
person against loss or liability for loss in respect of a certain risk or peril to which the object
of insurance may be exposed.
OR
To pay a sum of money or another thing of value upon the happening of a specific event.
What does Indemnify mean? - Correct Answer- To compensate the victim of a loss, in whole
or in part, by payment, repair, or replacement.
OR
An insurer must make good the amount of the insured's financial loss - no more and no less.
What is Risk? - Correct Answer- The chance of loss.
OR
The object of insurance.
What is Pure Risk? - Correct Answer- A chance of a loss, but no chance of profit.
What is Speculative Risk? - Correct Answer- A chance of loss or profit.
What are the Three Categories of Risk? - Correct Answer- Personal Risk;
Property Risk;
Liability Risk.
,What are the Four Methods of Handling Risk? - Correct Answer- Avoid the Risk;
Control the Risk;
Retention of Risk;
Transfer of Risk.
What is a Hazard? - Correct Answer- The condition which may cause a peril to occur or make
a loss more severe.
What are the Three Types of Hazards? - Correct Answer- Physical;
Moral;
Morale.
What is a Peril? - Correct Answer- The cause of the loss.
OR
An event which may cause a loss to occur.
Risk is? - Correct Answer- The chance of loss.
Peril is? - Correct Answer- The cause of loss.
Who is the Insured? - Correct Answer- The individual or firm wanting protection against a
loss.
OR
The person or corporation whose insurable interest is protected by the policy.
Who is the Insurer? - Correct Answer- The insurance company that issues the policy.
, OR
The one who assumes risk or agrees to underwrite a contract of insurance.
What is Underwriting? - Correct Answer- The process that insurers use to assess the
eligibility of a potential insured to receive their coverage.
Property and Casualty (P&G) or General Insurance covers what types of Insurance? - Correct
Answer- Automobile;
Property;
Liability;
Travel.
Property and Casualty (P&G) or General Insurance DOES NOT cover what types of
Insurance? - Correct Answer- Life & Health.
What are the two types of insurers? - Correct Answer- Private & Government.
What are the two types of Private Insurers? - Correct Answer- Stock Companies (For Profit)
& Mutual (Not For Profit).
What does Government Insurance entail? - Correct Answer- Medical;
Employment;
Worker's Compensation.
What are the 3 Insurance Distribution Channels? - Correct Answer- Direct Writing Channel;
Independent Brokerage Channel;
Agency Channel.
What is a Direct Writing Channel? - Correct Answer- An insurer that sells directly to the
public.
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