Risk Management and Insurance Quiz

Risk management involves the process of identifying, assessing, and prioritizing risks.

Insurance primarily aims to transfer the financial consequences of risks to an insurer.

The purpose of a deductible in insurance is to reduce the premium cost.

Risk retention involves accepting risks and their potential consequences.

Indemnity is a key principle of insurance.

Happiness insurance is not a recognized type of insurance.

Moral hazard refers to the risk that the insured party may behave recklessly due to being protected against the risk.

Subrogation refers to the right of the insurer to pursue legal action against a third party responsible for a loss.

Eye color is not a factor typically considered in insurance underwriting.

Flood damage is not typically covered under a standard homeowner's insurance policy.

Property insurance typically covers damage to physical property.

Catastrophe insurance is primarily designed to cover specific high-cost events such as natural disasters.

Loss ratio in insurance refers to the ratio of claims paid to premiums earned.

Marital status is not typically considered in determining insurance premiums.

Actuarial science in insurance involves the study of mathematical and statistical methods to assess risk in insurance, finance, and other industries.