Cpcu 500 stuvia - Study guides, Class notes & Summaries

Risk involves The possibility of a negative outcome. Possibility means - ANSWERThat an outcome may or may not occur. Probabilities are stated as decimal figure, a percentage, or a - ANSWERFraction To understand risk, one needs to know the probability of an outcome or event occurring. Which one of the following statements is correct with respect to probability? - ANSWERIt can be used to decide which activities to undertake. The statement, "There is a five percent chance that John will be inju...

Risk involves the possibility of a negative outcome. Possibility means - ANSWERThat an outcome may or may not occur. Risk can be classified as subjective or objective. Which one of the following statements is correct with respect to these risk classifications? - ANSWERSubjective risk can exist even where objective risk does not. The concept of correlation, in the context of why enterprise risk management works, - ANSWERIs the proposition that correlation increases risk while uncorrelated r...

Describe the 2 elements of risk - ANSWER1.) Uncertainty of outcomes: risk involves uncertainty about the type of outcome, timing o outcome, or both 2.) possibility of a negative outcome: at least of the potential outcomes is negative Whats the difference between possibility and probability? - ANSWERPossibility: outcome may or may not occur Probability: likelihood that an outcome will occur Does Possibility or Probability measure risk? - ANSWERProbability does, possibility DOES NOT ...

In insurance terminology, trucks, trailers, buses, fire engines, and ambulances designed for road use are examples of which one of the following categories of motor vehicles? - ANSWERAuto Property insurance policies generally refer to the contents of a commercial building as - ANSWERBusiness personal property When a person or business borrows money to buy a home or a building, - ANSWERthe borrower is called a mortgagor Liability entries on an organization's balance sheet are particularly use...

Which one of the following statements about the use of drones is true? - ANSWERDrones may be equipped with cameras that relay data in real-time Which one of the following uses infrared light to detect nearby objects? - ANSWERLidar AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and Georgia. The company has compiled a policyowner data base that can be used to send text messages when hurricanes approach. The company provides early warnings, storm updates f...