Attitudinal hazard - Study guides, Class notes & Summaries

RMIN 4000 Test 1 Brown UGA Latest 2024 Rated A+ Exposures things of value (assets) that could be lost Perils things that cause injury or loss risk a calculated possibility of a negative outcome Frequency the number of losses (such as fire or theft) that occur within a specified time period. aka the probability of a loss Severity the dollar amount of a loss for a specific peril (fire, theft, collision) aka How much does it cost when the loss does occur? Hazard a condition t...

frequency - ANSWER-- how often does a loss occur? - the number of losses (such as fire, theft, collision) that occur within a specified time period. - probability of a loss ex) probability of a fire is 0.0071 per loss exposure per year severity - ANSWER-- how much does it cost when a loss does occur? - the dollar amount of loss for a specific peril (fire, theft, collision). ex) average fire loss is $32,547 peril - ANSWER-- cause of a loss - things that could happen to assets - ...

4 types of hazards - Answer-1) physical hazard 2) moral hazard 3) attitudinal hazard 4) legal hazard 6 characteristics of an insurable risk - Answer-1) there must be a large number of exposure units 2) the loss must be accidental and unintentional 3) the loss must be determinable and measurable 4) the loss should not be catastrophic 5) the chance of loss must be calculable 6) the premium must be economically feasible active retention - Answer-active risk retention means that an individ...

Risk Management Final Exam (2024) || Questions & Solutions (100% Verified) Risk Management Final Exam (2024) || Questions & Solutions (100% Verified) define: objective risk - ANSWER - the relative variation of actual loss from expected loss define: risk - ANSWER - uncertainty concerning the occurrence of loss An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming the probability of loss remains the same, what would happen to the objective risk...

the probability that an event will occur; can be same for two outcomes but may have different objective risks - Chance of loss characterizes the relationship between two or more variables and then uses this characterization to predict values of a variable - regression analysis uncertainty concerning the occurrence of a loss - Risk the property or life that is being considered for insurance - Insurance form of risk any situation or circumstance in which a loss is possible, regardless of whe...

RMIN 4000 UGA- Brown- exam 1 Questions and Answers | 100% Pass!! definition of risk -Answer-A calculated possibility of a negative outcome calculated possibility -Answer-probabilistic outcome, ranges from 0-1 (0-100%) negative outcome -Answer-loss, must be quantifiable ($) frequency -Answer--"how often does a loss occur?" -number of losses in a certain time period -probability of a loss Severity -Answer--"how much does it cost when a loss occurs?" - dollar amount how to calculate f...

sources of information for identifying loss exposures - - risk analysis questionnaires - physical inspection - flow charts - financial statements - historical loss data (most common) What is Risk? - Uncertainty regarding loss Objective Risk - the relative variation of actual loss from expected loss subjective probability - - personal estimate of the chance of loss - it need not coincide with objective probability and is influenced by a variety of factors including age, sex, intelligence...

Exposures Ans: things of value (assets) that could be lost Perils Ans: things that cause injury or loss risk Ans: a calculated possibility of a negative outcome Frequency Ans: the number of losses (such as fire or theft) that occur within a specified time period. aka the probability of a loss Severity Ans: the dollar amount of a loss for a specific peril (fire, theft, collision) aka How much does it cost when the loss does occur? Hazard Ans: a condition that creates or increases t...

types of risk - ANSWER--pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk - ANSWER-uncertainty concerning the occurrence of a loss uncertainty - ANSWER-probabilities cannot be estimated loss exposure - ANSWER-any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufacturing plant objective risk (degree of risk) - ANSWER-...

Risk Management Exam 1 (2024) || Complete Questions & Solutions (100% Correct) Risk Management Exam 1 (2024) || Complete Questions & Solutions (100% Correct) A situation where an individual or business is exposed to the chance of experiencing a loss. - ANSWER - Risk A situation where there is a chance of loss; there is uncertainty as to whether or not a loss will occur. - ANSWER - Pure Risk A situation where there is a chance of loss or no loss, plus the possibility of gain. - ANSWER -...