#1
What is the primary goal of risk management?
To minimize the impact of risks
ExplanationMinimizing risk impact.
#2
Which of the following is not a method of risk retention?
Risk avoidance
ExplanationAvoiding risk.
#3
What is a peril in the context of insurance?
The cause of loss
ExplanationCause of loss.
#4
Which of the following is not a type of insurance risk?
Physical risk
ExplanationNot a type of risk.
#5
What is the purpose of an insurance policy's declaration page?
To summarize the coverage provided by the policy
ExplanationSummary of coverage.
#6
Which of the following is an example of a risk avoidance strategy?
Moving a business out of a flood-prone area
ExplanationAvoiding flood risk.
#7
What is an insurance deductible?
The initial amount the policyholder must pay before the insurance coverage kicks in
ExplanationInitial payment before coverage.
#8
Which of the following is an example of a moral hazard?
A person intentionally causing damage to their own property to collect insurance money
ExplanationIntentional property damage.
#9
What is the role of an insurance underwriter?
To assess and price insurance risks
ExplanationAssessing and pricing risks.
#10
What is the purpose of an insurance deductible?
To share the risk of loss between the insurer and the insured
ExplanationSharing loss risk.
#11
Which of the following is an example of a risk management technique?
All of the above
ExplanationVarious risk management methods.