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RMIN 4000 Exam 1 Brown (Latest) Questions With Complete Solutions!!
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RMIN 4000 Exam 1 Brown (Latest) Questions With Complete Solutions!!
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Name: Score:106 Multiple choice questions
Definition 1 of 106
Investment, Gambling, Drinking
Chance of loss must be calculable
Examples of speculative risks
Examples of an indirect loss
Examples of Peril
,Term 2 of 106
Risk financing - retention - self insurance
Indemnification for loss
Reduction of worry and fear
Source of investment funds
Loss prevention
Enhancement of credit
1. Identify loss exposures
2. Measure and analyze the loss exposures
3. Consider and select the appropriate risk management techniques
4. Implement and monitor the chosen techniques
a special form of planned retention by which part or all of a given loss exposure is retained
by the firm.
Appropriate for low-probability, high-severity
loss exposures.
Deductible
Excess Insurance
Manuscript policy
,Definition 3 of 106
affects the entire economy or large numbers of groups/persons within the economy
CANNOT be reduced/eliminated through diversification
Gov. assistance may be needed
Risks are correlated
Liability Risk
Traditional Risk Management
Nondiversifiable Risk
Adverse Selection
Term 4 of 106
Fundamental Risk
Nondiversifiable Risk
Diversifiable Risk
covers medical expenses because of sickness and injury
Quantifiable
Term 5 of 106
Underwriting cycles
Fire, Tornado, Collision, Burglary
A calculated possibility of a negative outcome
Nondiversifiable Risk
Hard Market
Soft Market
, Term 6 of 106
Risk financing
pays death benefits to beneficiaries when the insured dies
a special form of planned retention by which part or all of a given loss exposure is retained
by the firm.
The insured is restored to its approximate
financial position prior to the occurrence of the
loss.
Techniques for funding losses
Definition 7 of 106
Having back ups or copies of important documents or property available in case a loss occurs
Traditional Risk Management
Risk financing - retention - self insurance
Large number of exposure units
Risk control - Duplication
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