English IIQE Paper 1 Topic 1
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IIQEP1ET1
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- Answered
- Review
- Question 1 of 262
1. Question
1 pointsQID57:Which of the following are more likely to be insurable risks?
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is C.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is C.
Hint
References:1.1.1
- Question 2 of 262
2. Question
1 pointsQID38:The potential loss that risk presents may be:
CorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. EmotionalThe answer is D.
IncorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. EmotionalThe answer is D.
Hint
References:1.1.1
- Question 3 of 262
3. Question
1 pointsQID40:Risk means:
CorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is B.
IncorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is B.
Hint
References:1.1.1
- Question 4 of 262
4. Question
1 pointsQID41:Which of the following is likely to be commercially uninsurable?
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 5 of 262
5. Question
1 pointsQID42:Which of the following is likely to be commercially insurable?
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is A.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is A.
Hint
References:1.1.1
- Question 6 of 262
6. Question
1 pointsQID43:Some risks will make people feel grief and sorrow, but won’t bring any financial loss. The risks are:
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 7 of 262
7. Question
1 pointsQID45:Emotional loss:
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 8 of 262
8. Question
1 pointsQID46:In many cases, when insurers talk about “risk management”, they mean which of the following?
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is A.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is A.
Hint
References:1.1.1
- Question 9 of 262
9. Question
1 pointsQID47:What is the connection between “insurance” and “risk”?
CorrectB)The insured may have chance to bear responsibility, like deductible;
C) There are other methods to deal with risks, such as risk avoidance;
D) Emotional risks are likely to be commercially uninsurable.The answer is A.
IncorrectB)The insured may have chance to bear responsibility, like deductible;
C) There are other methods to deal with risks, such as risk avoidance;
D) Emotional risks are likely to be commercially uninsurable.The answer is A.
Hint
References:1.1.1
- Question 10 of 262
10. Question
1 pointsQID48:For an insurance policy purchased on an “all risks” basis, the expected definition of “peril” is:
CorrectThe peril means the cause of loss. The answer is A.
IncorrectThe peril means the cause of loss. The answer is A.
Hint
References:1.1.1
- Question 11 of 262
11. Question
1 pointsQID49:Which of the following is the definition of risk?
CorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is D.
IncorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is D.
Hint
References:1.1.1
- Question 12 of 262
12. Question
1 pointsQID50:From the insurance company’s point of view, which of the following is/are insurable loss(es)?
i. Financial loss
ii. Physical loss
iii. Emotional loss
iv. Specific lossCorrectFinancial and physical losses are likely to be (commercially) insurable risks. The answer is C.
IncorrectFinancial and physical losses are likely to be (commercially) insurable risks. The answer is C.
Hint
References:1.1.1
- Question 13 of 262
13. Question
1 pointsQID51:When an insurance policy insures on an “all risks” basis, the “risks” means:
CorrectThe peril (risk) means the cause of loss. The answer is A.
IncorrectThe peril (risk) means the cause of loss. The answer is A.
Hint
References:1.1.1
- Question 14 of 262
14. Question
1 pointsQID52:Emotional loss caused by some accidents:
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 15 of 262
15. Question
1 pointsQID37:Which of the following statements relates to the meaning of the word “risk”?
i. The peril insured
ii. The property at risk that insurers are considering insuring
iii. The person at risk that insurers are insuring
iv. Uncertainty concerning a potential lossCorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insured
4. The property at risk that insurers are considering insuringThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insured
4. The property at risk that insurers are considering insuringThe answer is D.
Hint
References:1.1.1
- Question 16 of 262
16. Question
1 pointsQID66:In different situations, a word can be used to describe the potential of loss, an insured peril, an insured person or property. This word is:
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is D.
Hint
References:1.1.1
- Question 17 of 262
17. Question
1 pointsQID1:Potential sadness and feelings of grief but no financial loss. In this case, what kind of loss could it be?
CorrectThe potential loss that risk presents may be:
1. Financial: i.e. measurable in monetary terms;
2. Physical: death or personal injury;
3. Emotional: feelings of grief and sorrow.The answer is C.
IncorrectThe potential loss that risk presents may be:
1. Financial: i.e. measurable in monetary terms;
2. Physical: death or personal injury;
3. Emotional: feelings of grief and sorrow.The answer is C.
Hint
References:1.1.1
- Question 18 of 262
18. Question
1 pointsQID72:Which of the following is/are more likely to be the meaning(s) of insurers using the word “risk”?
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is D.
Hint
References:1.1.1
- Question 19 of 262
19. Question
1 pointsQID71:If a policy is bought on the basis of “all risks”, the predetermined meaning of “peril” in this case is:
CorrectThe peril insured means the cause of loss. The answer is A.
IncorrectThe peril insured means the cause of loss. The answer is A.
Hint
References:1.1.1
- Question 20 of 262
20. Question
1 pointsQID70:If a policy is bought on the basis of “all risks”, the predetermined meaning of “peril” in this case is:
CorrectThe peril insured means the cause of loss. The answer is B.
IncorrectThe peril insured means the cause of loss. The answer is B.
Hint
References:1.1.1
- Question 21 of 262
21. Question
1 pointsQID69:The word “risk” is sometimes interpreted by insurers as:
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insuredThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insuredThe answer is D.
Hint
References:1.1.1
- Question 22 of 262
22. Question
1 pointsQID54:The word “risk”:
CorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is B.
IncorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is B.
Hint
References:1.1.1
- Question 23 of 262
23. Question
1 pointsQID67:Insurers may use the word “risk” with other meanings, including:
i. Descripting the property or policyholder that they are insuring
ii. Indicating the peril insured or cause of loss
iii. Management of investment and other speculative risks
iv. Make an assessment of any losses and gains that will be facedCorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is A.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is A.
Hint
References:1.1.1
- Question 24 of 262
24. Question
1 pointsQID56:Which of the following risks may not be insurable?
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 25 of 262
25. Question
1 pointsQID63:There is a type of risk that makes us sad but does not involve a financial loss. Such risks are:
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 26 of 262
26. Question
1 pointsQID62:”Risk”:
CorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is D.
IncorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is D.
Hint
References:1.1.1
- Question 27 of 262
27. Question
1 pointsQID61:Which of the following risks is more likely to be insurable?
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is B.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is B.
Hint
References:1.1.1
- Question 28 of 262
28. Question
1 pointsQID60:The potential loss that risk presents may be:
CorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. EmotionalThe answer is D.
IncorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. EmotionalThe answer is D.
Hint
References:1.1.1
- Question 29 of 262
29. Question
1 pointsQID59:The definition of “risk” is:
CorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is D.
IncorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is D.
Hint
References:1.1.1
- Question 30 of 262
30. Question
1 pointsQID53:The definition of “risk” in the insurer’s view is:
CorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is B.
IncorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is B.
Hint
References:1.1.1
- Question 31 of 262
31. Question
1 pointsQID68:Insurers sometimes use the word “risk” to describe:
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insuredThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insuredThe answer is D.
Hint
References:1.1.1
- Question 32 of 262
32. Question
1 pointsQID10:Risk is defined as:
CorrectRisk is defined as the uncertainty concerning a potential loss. The answer is D.
IncorrectRisk is defined as the uncertainty concerning a potential loss. The answer is D.
Hint
References:1.1.1
- Question 33 of 262
33. Question
1 pointsQID19:Which of the following statements about the “concept of risk” is true?
i. All risks are commercially insurable
ii. Emotional risks are not normally insurable
iii. Not all risks are commercially insurable
iv. None of the aboveCorrectEmotional risks are likely to be commercially uninsurable risks.
Speculative risks are not normally insurable.The answer is C.
IncorrectEmotional risks are likely to be commercially uninsurable risks.
Speculative risks are not normally insurable.The answer is C.
Hint
References:1.1.1
- Question 34 of 262
34. Question
1 pointsQID18:The potential loss that risk presents may be:
CorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. Emotional
The answer is D.IncorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. Emotional
The answer is D.Hint
References:1.1.1
- Question 35 of 262
35. Question
1 pointsQID17:Insurance covers both financial and physical risks. If a person is very sorrow because his friend is ill, this is:
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is A.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is A.
Hint
References:1.1.1
- Question 36 of 262
36. Question
1 pointsQID16:Which of the following is most relevant to “uncertainty concerning a potential loss”?
Correct“Risk” contains a suggestion of loss or danger. We may therefore define it as “uncertainty concerning a potential loss”. The answer is A.
Incorrect“Risk” contains a suggestion of loss or danger. We may therefore define it as “uncertainty concerning a potential loss”. The answer is A.
Hint
References:1.1.1
- Question 37 of 262
37. Question
1 pointsQID14:Which of the following definitions of risk is incorrect?
CorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable.
Tools or measures of risk handling include: risk avoidance, loss prevention, loss reduction, risk transfer, risk financing.
The answer is D.
IncorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable.
Tools or measures of risk handling include: risk avoidance, loss prevention, loss reduction, risk transfer, risk financing.
The answer is D.
Hint
References:1.1.1
- Question 38 of 262
38. Question
1 pointsQID20:Which of the following is more likely to be commercially insurable?
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is A.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is A.
Hint
References:1.1.1
- Question 39 of 262
39. Question
1 pointsQID11:Which of the following may be insurers’ definition of “risk”?
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insured
The answer is D.IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insured
The answer is D.Hint
References:1.1.1
- Question 40 of 262
40. Question
1 pointsQID4:How can risk be described?
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is C.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is C.
Hint
References:1.1.1
- Question 41 of 262
41. Question
1 pointsQID7:Which of the following is unlikely to be compensated?
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 42 of 262
42. Question
1 pointsQID6:Which of the following risks is most likely to be insurable?
CorrectFinancial risks are likely to be commercially insurable risks. The answer is C.
IncorrectFinancial risks are likely to be commercially insurable risks. The answer is C.
Hint
References:1.1.1
- Question 43 of 262
43. Question
1 pointsQID5:Mr. Liang is very sorrow because of his friend’s death. What is the risk he faced?
CorrectEmotional risks are feelings of grief and sorrow. The answer is C.
IncorrectEmotional risks are feelings of grief and sorrow. The answer is C.
Hint
References:1.1.1
- Question 44 of 262
44. Question
1 pointsQID36:Some risks will make people feel grief and sorrow, but won’t bring any financial loss. The risks are:
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 45 of 262
45. Question
1 pointsQID3:Which of the following concepts is true?
CorrectRisk is defined as the uncertainty concerning a potential loss. The answer is C.
IncorrectRisk is defined as the uncertainty concerning a potential loss. The answer is C.
Hint
References:1.1.1
- Question 46 of 262
46. Question
1 pointsQID55:When the word “risk” is used, the insurer may interpret it as which of the following?
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)The answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)The answer is D.
Hint
References:1.1.1
- Question 47 of 262
47. Question
1 pointsQID13:Which of the following statements relates to the meaning of the word “risk”?
i. The peril insured
ii. The property at risk that they are considering insuring
iii. The person at risk that they are insuring
iv. Uncertainty concerning a potential lossCorrectInsurance companies may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insured
The answer is D.IncorrectInsurance companies may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insured
The answer is D.Hint
References:1.1.1
- Question 48 of 262
48. Question
1 pointsQID32:What does the “uncertainty concerning a potential loss” mean?
CorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is B.
IncorrectThe definition of risk is “uncertainty concerning a potential loss”. The answer is B.
Hint
References:1.1.1
- Question 49 of 262
49. Question
1 pointsQID2:Which of the following statements about “insurance and risk” is true?
CorrectEmotional risks are likely to be commercially uninsurable risks.
Speculative risks are also uninsurable risks.
Tools or measures of risk handling include: risk avoidance, loss prevention, etc.The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks.
Speculative risks are also uninsurable risks.
Tools or measures of risk handling include: risk avoidance, loss prevention, etc.The answer is D.
Hint
References:1.1.1
- Question 50 of 262
50. Question
1 pointsQID33:Which of the following statements about the risk is true?
i. All risks are commercially insurable
ii. Not all risks are commercially insurable
iii. The only way to deal with risk is insurance
iv. Insurers may use the word “risk” with other meaningsCorrectNot all risks are commercially insurable. There are several ways to manage risk, including: risk avoidance, loss prevention, loss reduction. The answer is B.
IncorrectNot all risks are commercially insurable. There are several ways to manage risk, including: risk avoidance, loss prevention, loss reduction. The answer is B.
Hint
References:1.1.1
- Question 51 of 262
51. Question
1 pointsQID31:Which of the following is more likely to be insurable for the potential loss caused by risks?
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is A.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is A.
Hint
References:1.1.1
- Question 52 of 262
52. Question
1 pointsQID30:In insurance, the cause of insured loss or insured property is called:
CorrectIn insurance, the cause of insured loss or insured property is called Risk.
IncorrectIn insurance, the cause of insured loss or insured property is called Risk.
Hint
References:1.1.1
- Question 53 of 262
53. Question
1 pointsQID29:The “risk” is:
CorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is C.
IncorrectFinancial risks and physical risks are likely to be commercially insurable risks. The answer is C.
Hint
References:1.1.1
- Question 54 of 262
54. Question
1 pointsQID28:Which of the following statements about risk is true?
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)The answer is C.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)The answer is C.
Hint
References:1.1.1
- Question 55 of 262
55. Question
1 pointsQID27:Which of the following risks is likely to be commercially uninsurable?
CorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
IncorrectEmotional risks are likely to be commercially uninsurable risks. The answer is D.
Hint
References:1.1.1
- Question 56 of 262
56. Question
1 pointsQID25:Risk means:
CorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is C.
IncorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is C.
Hint
References:1.1.1
- Question 57 of 262
57. Question
1 pointsQID24:The potential loss that risk presents may be:
CorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. EmotionalThe answer is D.
IncorrectThe potential loss that risk presents may be:
1. Financial
2. Physical
3. EmotionalThe answer is D.
Hint
References:1.1.1
- Question 58 of 262
58. Question
1 pointsQID23:Which of the following is/are true of the definition of “risk”?
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insuredThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss) insuredThe answer is D.
Hint
References:1.1.1
- Question 59 of 262
59. Question
1 pointsQID22:Insurers use the word “risk” to mean:
CorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is D.
IncorrectInsurers may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insuredThe answer is D.
Hint
References:1.1.1
- Question 60 of 262
60. Question
1 pointsQID21:Which of the following risks is unlikely to be insurable?
CorrectEmotional risks are likely to be uninsurable risks. The answer is B.
IncorrectEmotional risks are likely to be uninsurable risks. The answer is B.
Hint
References:1.1.1
- Question 61 of 262
61. Question
1 pointsQID26:Risk means:
CorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is B.
IncorrectThe definition of risk is the “uncertainty concerning a potential loss”. The answer is B.
Hint
References:1.1.1
- Question 62 of 262
62. Question
1 pointsQID34:A surveyor employed by an insurer requires to check the details of a particular “risk” when assessing the risk. “Risk” means:
CorrectThe risk assessed by the surveyor must be insurable. Option A, B and C are commercially insurable risks. The answer is D.
IncorrectThe risk assessed by the surveyor must be insurable. Option A, B and C are commercially insurable risks. The answer is D.
Hint
References:1.1.1
- Question 63 of 262
63. Question
1 pointsQID110:Which of the following should be described as a fundamental risk?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
Hint
References:1.1.2
- Question 64 of 262
64. Question
1 pointsQID120:Some risks are very likely to be uninsurable. Which of the following is/are this type of risks?
CorrectThe majority of the risks which are insured by commercial insurers are pure and particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are pure and particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 65 of 262
65. Question
1 pointsQID119:When a risk becomes a fact, it affects a relatively small scope. This risk is called a:
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
Hint
References:1.1.2
- Question 66 of 262
66. Question
1 pointsQID118:The pure risk means:
CorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 67 of 262
67. Question
1 pointsQID117:Which of the following is a “pure risk”?
CorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 68 of 262
68. Question
1 pointsQID116:We may classify risk under two broad
headings, namely, potential financial results and:CorrectWe may classify risk under two broad headings (each having two categories) according to:
(a) its potential financial results
(b) its cause and effectThe answer is B.
IncorrectWe may classify risk under two broad headings (each having two categories) according to:
(a) its potential financial results
(b) its cause and effectThe answer is B.
Hint
References:1.1.2
- Question 69 of 262
69. Question
1 pointsQID107:According to the effect, risks can be classified as fundamental risks and:
CorrectAccording to the effect, risks can be considered as being either particular or fundamental. The answer is D.
IncorrectAccording to the effect, risks can be considered as being either particular or fundamental. The answer is D.
Hint
References:1.1.2
- Question 70 of 262
70. Question
1 pointsQID115:The risk which offers the potential of gain or loss is a:
CorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is A.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is A.
Hint
References:1.1.2
- Question 71 of 262
71. Question
1 pointsQID114:If classified from the effect of risk, risks can be divided into:
CorrectIf classified from the effect of risk, risks can be divided into fundamental risks and particular risks. The answer is C.
IncorrectIf classified from the effect of risk, risks can be divided into fundamental risks and particular risks. The answer is C.
Hint
References:1.1.2
- Question 72 of 262
72. Question
1 pointsQID113:Which of the following is most suitable to describe the particular risk?
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is B.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is B.
Hint
References:1.1.2
- Question 73 of 262
73. Question
1 pointsQID111:Which of the following can be described as a “speculative risk”?
i. Fluctuations in the hang Seng index
ii. Casino loss caused by fire
iii. A horse racing result at Happy Valley Racecourse
iv. Research on the effectiveness of antibioticsCorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities.
(ii) is a pure risk, which offers the potential of loss only.
The answer is C.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities.
(ii) is a pure risk, which offers the potential of loss only.
The answer is C.
Hint
References:1.1.2
- Question 74 of 262
74. Question
1 pointsQID109:Exclusions in most property insurance refer to which of the following risks?
CorrectMost property insurance exclusions are “standard” exclusions (war, nuclear accident, etc.), which are fundamental risks. The answer is C.
IncorrectMost property insurance exclusions are “standard” exclusions (war, nuclear accident, etc.), which are fundamental risks. The answer is C.
Hint
References:1.1.2
- Question 75 of 262
75. Question
1 pointsQID121:Which of the following can be described as a “speculative risk”?
i. Fluctuations in the hang Seng index
ii. The production of a new model of car
iii. Casino loss caused by fire
iv. The result of a football matchCorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is C.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is C.
Hint
References:1.1.2
- Question 76 of 262
76. Question
1 pointsQID135:When a risk becomes a fact, it will offer the potential of loss or gain, which can be called a:
CorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is B.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is B.
Hint
References:1.1.2
- Question 77 of 262
77. Question
1 pointsQID108:Which of the following correctly describes the “fundamental risk”?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters which are problems for society or mankind rather than just the “particular” individuals
involved.The majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially.
The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters which are problems for society or mankind rather than just the “particular” individuals
involved.The majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially.
The answer is D.
Hint
References:1.1.2
- Question 78 of 262
78. Question
1 pointsQID112:Which of the following is a “pure risk”?
i. Plane crash
ii. Launch new insurance products
iii. The building destroyed accidentally by fire
iv. A valuable painting was stolen from the museumCorrectPure risks offer the potential of loss only (no gain). The answer is B.
IncorrectPure risks offer the potential of loss only (no gain). The answer is B.
Hint
References:1.1.2
- Question 79 of 262
79. Question
1 pointsQID73:This risk affects large numbers of people and is a widespread disaster, which refers to:
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is D.
Hint
References:1.1.2
- Question 80 of 262
80. Question
1 pointsQID106:In terms of degree of insurability, particular risks:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
Hint
References:1.1.2
- Question 81 of 262
81. Question
1 pointsQID142:Which of the following is more likely to be a “speculative risk”?
i. Fluctuations in the hang Seng index
ii. Develop a new sports car
iii. Property was destroyed in an accidental fire
iv. Bet on the outcome of a football matchCorrectSpeculative risks offer the potential of gain or loss. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is D.
Hint
References:1.1.2
- Question 82 of 262
82. Question
1 pointsQID140:Which of the following is a correct statement of speculative risks?
CorrectSpeculative risks offer the potential of gain or loss. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is D.
Hint
References:1.1.2
- Question 83 of 262
83. Question
1 pointsQID139:Which of the following is true to describe the “pure risk”?
CorrectPure risks offer the potential of loss only (no gain). The answer is B.
IncorrectPure risks offer the potential of loss only (no gain). The answer is B.
Hint
References:1.1.2
- Question 84 of 262
84. Question
1 pointsQID138:Which of the following is more likely to be a speculative risk?
CorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is A.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is A.
Hint
References:1.1.2
- Question 85 of 262
85. Question
1 pointsQID133:Which of the following should be described as a fundamental risk?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
Hint
References:1.1.2
- Question 86 of 262
86. Question
1 pointsQID136:Which of the following is more likely to be a “speculative risk”?
i. Fluctuations in the prime rate
ii. Research and develop a new model sports car
iii. Financial loss of casino caused by fire
iv. Gambling on a race at Sha Tin RacecourseCorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.
Hint
References:1.1.2
- Question 87 of 262
87. Question
1 pointsQID122:Which of the following can be described as a “speculative risk”?
i. Fluctuations in the hang Seng index
ii. Development and research of avian influenza vaccine
iii. Casino loss caused by fire
iv. A horse racing result at Sha Tin RacecourseCorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is B.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is B.
Hint
References:1.1.2
- Question 88 of 262
88. Question
1 pointsQID134:When a risk becomes a fact, losses will occur. According to its effect, risks may be classified as:
CorrectWhen a risk becomes a fact, losses will occur. According to its effect, risks may be classified as particular risks and fundamental risks. The answer is C.
IncorrectWhen a risk becomes a fact, losses will occur. According to its effect, risks may be classified as particular risks and fundamental risks. The answer is C.
Hint
References:1.1.2
- Question 89 of 262
89. Question
1 pointsQID131:According to the potential financial results, risks can be classified into speculative risks and:
CorrectAccording to the potential financial results, risks may be considered as being either pure or speculative. The answer is A.
IncorrectAccording to the potential financial results, risks may be considered as being either pure or speculative. The answer is A.
Hint
References:1.1.2
- Question 90 of 262
90. Question
1 pointsQID129:Which of the following is true about “pure risks”?
CorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.
Hint
References:1.1.2
- Question 91 of 262
91. Question
1 pointsQID128:Which of the following is a “pure risk”?
CorrectPure risks offer the potential of loss only (no gain). The answer is D.
IncorrectPure risks offer the potential of loss only (no gain). The answer is D.
Hint
References:1.1.2
- Question 92 of 262
92. Question
1 pointsQID124:Which of the following are more likely to be “pure risks”?
i. The building was destroyed in the air crash
ii. Develop a new weapon
iii. The building was destroyed by an accidental fire
iv. A valuable painting was stolen from the museumCorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 93 of 262
93. Question
1 pointsQID123:When a risk becomes a fact, it affects a relatively wide scope. This risk is called a:
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is D.
Hint
References:1.1.2
- Question 94 of 262
94. Question
1 pointsQID137:Which of the following is not a pure risk?
CorrectPure risks offer the potential of loss only (no gain). The answer is D.
IncorrectPure risks offer the potential of loss only (no gain). The answer is D.
Hint
References:1.1.2
- Question 95 of 262
95. Question
1 pointsQID78:Which of the following is/are pure risk(s)?
i. The building was destroyed in the air crash
ii. Developing a new marine drilling technology
iii. The building was accidentally destroyed by fire
iv. A valuable painting was stolen from the museumCorrectPure risks offer the potential of loss only (no gain). (ii) may have gains. The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). (ii) may have gains. The answer is C.
Hint
References:1.1.2
- Question 96 of 262
96. Question
1 pointsQID75:Which of the following is true about fundamental risks?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
Hint
References:1.1.2
- Question 97 of 262
97. Question
1 pointsQID85:Which of the following is unlikely to be insurable?
CorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 98 of 262
98. Question
1 pointsQID84:From the insurable point of view, pure risks:
CorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.
Hint
References:1.1.2
- Question 99 of 262
99. Question
1 pointsQID83:Which of the following is a fundamental risk?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is A.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is A.
Hint
References:1.1.2
- Question 100 of 262
100. Question
1 pointsQID82:According to the classification of financial results, risks can be divided into two types, including speculative risks and:
CorrectAccording to the classification of financial results, risks can be divided into two types, including speculative risks and pure risks. The answer is A.
IncorrectAccording to the classification of financial results, risks can be divided into two types, including speculative risks and pure risks. The answer is A.
Hint
References:1.1.2
- Question 101 of 262
101. Question
1 pointsQID81:According to the classification of financial results, risks can be divided into two types, including pure risks and:
CorrectAccording to the classification of financial results, risks can be divided into two types, including pure risks and speculative risks. The answer is A.
IncorrectAccording to the classification of financial results, risks can be divided into two types, including pure risks and speculative risks. The answer is A.
Hint
References:1.1.2
- Question 102 of 262
102. Question
1 pointsQID87:Which of the following is a “speculative risk” but not a “pure risk”?
CorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.
Hint
References:1.1.2
- Question 103 of 262
103. Question
1 pointsQID79:There is a type of risk which is very likely to be uninsurable. Which of the following is that kind of risk?
CorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 104 of 262
104. Question
1 pointsQID88:Which of the following is not a pure risk?
CorrectPure risks offer the potential of loss only (no gain), or, at best, no change. Such risks include fire, accident and other undesirable happenings. The answer is B.
IncorrectPure risks offer the potential of loss only (no gain), or, at best, no change. Such risks include fire, accident and other undesirable happenings. The answer is B.
Hint
References:1.1.2
- Question 105 of 262
105. Question
1 pointsQID77:Which of the following is a fundamental risk?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
Hint
References:1.1.2
- Question 106 of 262
106. Question
1 pointsQID76:Which of the following is true about fundamental risks?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
Hint
References:1.1.2
- Question 107 of 262
107. Question
1 pointsQID147:According to the financial results, if risks offer the potential of loss only but no gain, or, at best, no change. For example: fire or car accident. Such risks are:
CorrectPure risks offer the potential of loss only (no gain). The answer is A.
IncorrectPure risks offer the potential of loss only (no gain). The answer is A.
Hint
References:1.1.2
- Question 108 of 262
108. Question
1 pointsQID74:Only have the potential of loss but no gain are called:
CorrectPure risks offer the potential of loss only (no gain). The answer is B.
IncorrectPure risks offer the potential of loss only (no gain). The answer is B.
Hint
References:1.1.2
- Question 109 of 262
109. Question
1 pointsQID145:Which of the following are “pure risks”?
i. Ship sank
ii. Develop a new oil drilling technology
iii. The building was accidentally destroyed by fire
iv. Plane crashCorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 110 of 262
110. Question
1 pointsQID15:Which of the following is incorrect in terms of the meaning of risk?
CorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is B.
IncorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is B.
Hint
References:1.1.2
- Question 111 of 262
111. Question
1 pointsQID80:Based on their effect, risks can be classified into two types, including particular risks and:
CorrectBased on their effect, risks can be classified into two types, including particular risks and fundamental risks. The answer is B.
IncorrectBased on their effect, risks can be classified into two types, including particular risks and fundamental risks. The answer is B.
Hint
References:1.1.2
- Question 112 of 262
112. Question
1 pointsQID96:There is a type of risks that may have a very large and wide effect. Such risks are called:
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is D.
Hint
References:1.1.2
- Question 113 of 262
113. Question
1 pointsQID104:If risks classified according to the effect, in addition to fundamental risks, the other are:
CorrectIf risks classified according to the effect, in addition to fundamental risks, the other are particular risks. The answer is C.
IncorrectIf risks classified according to the effect, in addition to fundamental risks, the other are particular risks. The answer is C.
Hint
References:1.1.2
- Question 114 of 262
114. Question
1 pointsQID103:Which of the following are “pure risks”?
i. Ship sank
ii. Weapon development
iii. The building was accidentally destroyed by fire
iv. Plane crashCorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 115 of 262
115. Question
1 pointsQID102:Which of the following is/are the fundamental risk(s)?
i. War
ii. Famine
iii. Traffic accidentCorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
Hint
References:1.1.2
- Question 116 of 262
116. Question
1 pointsQID101:We may classify risk under two broad headings, including financial results and which of the following?
CorrectWe may classify risk under two broad headings according to:
(a) its potential financial results
(b) its cause and effectThe answer is B.
IncorrectWe may classify risk under two broad headings according to:
(a) its potential financial results
(b) its cause and effectThe answer is B.
Hint
References:1.1.2
- Question 117 of 262
117. Question
1 pointsQID100:Which of the following is most likely to be uninsurable in terms of degree of insurability?
CorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 118 of 262
118. Question
1 pointsQID99:Which of the following is true about “pure risks”?
CorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.
Hint
References:1.1.2
- Question 119 of 262
119. Question
1 pointsQID86:Which of the following is a “speculative risk” but not a “pure risk”?
CorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.
Hint
References:1.1.2
- Question 120 of 262
120. Question
1 pointsQID97:After risks become facts, according to the actual scope of effect, what can the risks be classified into?
CorrectAccording to the actual scope of effect, risks can be considered as being either particular or fundamental. The answer is B.
IncorrectAccording to the actual scope of effect, risks can be considered as being either particular or fundamental. The answer is B.
Hint
References:1.1.2
- Question 121 of 262
121. Question
1 pointsQID105:Links between risk and insurance:
Correct(ii) Sometimes the insured is also responsible for the loss, such as the deductible;
(iii) There are other ways (risk management), such as risk avoidance;
(iv) Not all risk are insurable, such as emotional risksThe answer is A.
Incorrect(ii) Sometimes the insured is also responsible for the loss, such as the deductible;
(iii) There are other ways (risk management), such as risk avoidance;
(iv) Not all risk are insurable, such as emotional risksThe answer is A.
Hint
References:1.1.2
- Question 122 of 262
122. Question
1 pointsQID95:Which of the following is a particular risk?
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. Such risks include motor accidents, personal injuries and the like. The answer is B.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. Such risks include motor accidents, personal injuries and the like. The answer is B.
Hint
References:1.1.2
- Question 123 of 262
123. Question
1 pointsQID94:Which of the following is a “pure risk”?
CorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 124 of 262
124. Question
1 pointsQID93:Which of the following can be described as a “speculative risk”?
i. Fluctuations in the hang Seng index
ii. Introducing a new form of savings life insurance
iii. Casino loss caused by fire
iv. A horse racing result at Sha Tin RacecourseCorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. (iii) is a pure risk, which offers the potential of loss only. The answer is C.
IncorrectSpeculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. (iii) is a pure risk, which offers the potential of loss only. The answer is C.
Hint
References:1.1.2
- Question 125 of 262
125. Question
1 pointsQID92:There is a type of risks that when they become reality, they may have relatively limited rather than widespread influence. Such risks are called:
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is B.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is B.
Hint
References:1.1.2
- Question 126 of 262
126. Question
1 pointsQID90:Which of the following is true about fundamental risks?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Fundamental risks are not normally insurable. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Fundamental risks are not normally insurable. The answer is C.
Hint
References:1.1.2
- Question 127 of 262
127. Question
1 pointsQID89:Only offer the potential of loss but no gain are called:
CorrectPure risks offer the potential of loss only (no gain). The answer is B.
IncorrectPure risks offer the potential of loss only (no gain). The answer is B.
Hint
References:1.1.2
- Question 128 of 262
128. Question
1 pointsQID98:Which of the following is a “pure risk”?
CorrectPure risks offer the potential of loss only (no gain). The answer is D.
IncorrectPure risks offer the potential of loss only (no gain). The answer is D.
Hint
References:1.1.2
- Question 129 of 262
129. Question
1 pointsQID185:Which of the following is a correct statement of fundamental risks?
CorrectAll statements are true about the fundamental risk. The answer is D.
IncorrectAll statements are true about the fundamental risk. The answer is D.
Hint
References:1.1.2
- Question 130 of 262
130. Question
1 pointsQID175:In terms of commercial insurance, particular risks:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 131 of 262
131. Question
1 pointsQID176:According to the effect, risks can be divided into:
CorrectAccording to the effect, risks can be considered as being either particular or fundamental. The answer is D.
IncorrectAccording to the effect, risks can be considered as being either particular or fundamental. The answer is D.
Hint
References:1.1.2
- Question 132 of 262
132. Question
1 pointsQID177:Particular risks are:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is B.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is B.
Hint
References:1.1.2
- Question 133 of 262
133. Question
1 pointsQID178:Which of the following can be described as a “fundamental risk”?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
Hint
References:1.1.2
- Question 134 of 262
134. Question
1 pointsQID179:According to the effect, risks can be classified as:
CorrectAccording to the effect, risks can be considered as being either particular or fundamental. The answer is B.
IncorrectAccording to the effect, risks can be considered as being either particular or fundamental. The answer is B.
Hint
References:1.1.2
- Question 135 of 262
135. Question
1 pointsQID181:Which of the following is a description of fundamental risk?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
Hint
References:1.1.2
- Question 136 of 262
136. Question
1 pointsQID182:In terms of degree of insurability, fundamental risks are:
CorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is A.
IncorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is A.
Hint
References:1.1.2
- Question 137 of 262
137. Question
1 pointsQID174:A risk that affects only a small number of people in a small area is a:
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
Hint
References:1.1.2
- Question 138 of 262
138. Question
1 pointsQID184:Fundamental risks:
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is C.
Hint
References:1.1.2
- Question 139 of 262
139. Question
1 pointsQID189:Particular risks are:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 140 of 262
140. Question
1 pointsQID186:If classified by cause and effect of risk, the two common categories would be fundamental risks and:
CorrectIf classified by cause and effect of risk, the two common categories would be fundamental risks and particular risks. The answer is C.
IncorrectIf classified by cause and effect of risk, the two common categories would be fundamental risks and particular risks. The answer is C.
Hint
References:1.1.2
- Question 141 of 262
141. Question
1 pointsQID187:Which of the following is insured by commercial insurers?
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. Emotional risks are likely to be commercially uninsurable risks. The answer is A.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. Emotional risks are likely to be commercially uninsurable risks. The answer is A.
Hint
References:1.1.2
- Question 142 of 262
142. Question
1 pointsQID188:Which of the following is not a “fundamental risk”?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is B.
Hint
References:1.1.2
- Question 143 of 262
143. Question
1 pointsQID190:According to the effect, risks can be classified into particular risks and:
CorrectAccording to the effect, risks can be classified into particular risks and fundamental risks. The answer is C.
IncorrectAccording to the effect, risks can be classified into particular risks and fundamental risks. The answer is C.
Hint
References:1.1.2
- Question 144 of 262
144. Question
1 pointsQID193:Which of the following is true about the relation of insurance and risk management?
CorrectInsurance is a method of risk transfer under risk management. The answer is B.
IncorrectInsurance is a method of risk transfer under risk management. The answer is B.
Hint
References:1.1.2
- Question 145 of 262
145. Question
1 pointsQID194:What is the relation between “risk” and “insurance”?
CorrectNot all risks are insurable, such as fundamental risks and speculative risks. The answer is A.
IncorrectNot all risks are insurable, such as fundamental risks and speculative risks. The answer is A.
Hint
References:1.1.2
- Question 146 of 262
146. Question
1 pointsQID148:Which of the following can be described as a “speculative risk”?
CorrectSpeculative risks offer the potential of gain or loss. The answer is B.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is B.
Hint
References:1.1.2
- Question 147 of 262
147. Question
1 pointsQID141:Which of the following is more likely to be a “pure risk”?
i. The ship sank at sea
ii. Develop a new marine oil drilling technology
iii. The building was destroyed in the fire
iv. A famous painting was stolen from the museumCorrectPure risks offer the potential of loss only (no gain). The answer is D.
IncorrectPure risks offer the potential of loss only (no gain). The answer is D.
Hint
References:1.1.2
- Question 148 of 262
148. Question
1 pointsQID183:From the insurable point of view, particular risks:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
Hint
References:1.1.2
- Question 149 of 262
149. Question
1 pointsQID152:Definition of speculative risk:
CorrectSpeculative risks offer the potential of gain or loss. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is D.
Hint
References:1.1.2
- Question 150 of 262
150. Question
1 pointsQID191:Which of the following statements about the particular risk is true?
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
Hint
References:1.1.2
- Question 151 of 262
151. Question
1 pointsQID173:From the insurable point of view, fundamental risks:
CorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is A.
IncorrectFundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is A.
Hint
References:1.1.2
- Question 152 of 262
152. Question
1 pointsQID149:In terms of degree of insurability, pure risks:
CorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is D.
IncorrectThe majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is D.
Hint
References:1.1.2
- Question 153 of 262
153. Question
1 pointsQID150:Which of the following can be described as a “speculative risk”?
CorrectSpeculative risks offer the potential of gain or loss. The answer is B.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is B.
Hint
References:1.1.2
- Question 154 of 262
154. Question
1 pointsQID151:In the risk classification, according to the financial results, risks may be considered as being either pure risks or:
CorrectAccording to the financial results, risks may be considered as being either pure risks or speculative risks. The answer is C.
IncorrectAccording to the financial results, risks may be considered as being either pure risks or speculative risks. The answer is C.
Hint
References:1.1.2
- Question 155 of 262
155. Question
1 pointsQID153:Which of the following is a speculative risk but not a pure risk?
CorrectSpeculative risks offer the potential of gain or loss. The answer is D.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is D.
Hint
References:1.1.2
- Question 156 of 262
156. Question
1 pointsQID154:What types of risks are included if classified by financial results?
CorrectAccording to the financial results, risks may be considered as being either pure or speculative. The answer is B.
IncorrectAccording to the financial results, risks may be considered as being either pure or speculative. The answer is B.
Hint
References:1.1.2
- Question 157 of 262
157. Question
1 pointsQID155:Which of the following is related to the “pure risk”?
CorrectPure risks offer the potential of loss only (no gain). The answer is C.
IncorrectPure risks offer the potential of loss only (no gain). The answer is C.
Hint
References:1.1.2
- Question 158 of 262
158. Question
1 pointsQID156:In terms of degree of insurability, particular risks:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
Hint
References:1.1.2
- Question 159 of 262
159. Question
1 pointsQID167:Which of the following statements about the fundamental risk is true?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. The answer is B.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. The answer is B.
Hint
References:1.1.2
- Question 160 of 262
160. Question
1 pointsQID171:Which of the following can be described as a “fundamental risk”?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is A.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Such risks include famine, war, terrorist attack, widespread flood and other disasters. The answer is A.
Hint
References:1.1.2
- Question 161 of 262
161. Question
1 pointsQID160:Which of the following is true about particular risks?
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is D.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is D.
Hint
References:1.1.2
- Question 162 of 262
162. Question
1 pointsQID170:The risk which may offer the potential of gain or loss is a:
CorrectSpeculative risks offer the potential of gain or loss. The answer is B.
IncorrectSpeculative risks offer the potential of gain or loss. The answer is B.
Hint
References:1.1.2
- Question 163 of 262
163. Question
1 pointsQID172:According to the effect, risks can be classified into particular risks and:
CorrectAccording to the effect, risks can be classified into particular risks and fundamental risks. The answer is C.
IncorrectAccording to the effect, risks can be classified into particular risks and fundamental risks. The answer is C.
Hint
References:1.1.2
- Question 164 of 262
164. Question
1 pointsQID169:Which of the following is the correct description of the fundamental risk?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is D.
Hint
References:1.1.2
- Question 165 of 262
165. Question
1 pointsQID166:Which of the following statements about the fundamental risk is true?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. The answer is D.
Hint
References:1.1.2
- Question 166 of 262
166. Question
1 pointsQID165:Which of the following statements about the fundamental risk is true?
CorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Fundamental risks are not normally insurable. The answer is D.
IncorrectThe causes of fundamental risks are outside the control of any one individual or even a group of individual, and their outcome affects large numbers of people. Fundamental risks are not normally insurable. The answer is D.
Hint
References:1.1.2
- Question 167 of 262
167. Question
1 pointsQID163:In terms of degree of insurability, particular risks:
CorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
IncorrectThe majority of the risks which are insured by commercial insurers are particular risks. Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.
Hint
References:1.1.2
- Question 168 of 262
168. Question
1 pointsQID162:Particular risks are:
CorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
IncorrectParticular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.
Hint
References:1.1.2
- Question 169 of 262
169. Question
1 pointsQID240:In the field of knowledge and research, risk management is about managing:
CorrectRisk management is a term which is used with different meanings:
In the world of banking and other financial services outside insurance, it means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is C.
IncorrectRisk management is a term which is used with different meanings:
In the world of banking and other financial services outside insurance, it means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is C.
Hint
References:1.1.3
- Question 170 of 262
170. Question
1 pointsQID232:Which of the following statements about risk management is true?
i. The term risk management may be associated with pure and speculative risks
ii. Insurers are very likely to restrict it to pure risks
iii. Investors are very likely to restrict it to speculative risks
iv. Insurance companies pay more attention to how to reduce insured risksCorrectAll statements about risk management are correct. The answer is D.
IncorrectAll statements about risk management are correct. The answer is D.
Hint
References:1.1.3
- Question 171 of 262
171. Question
1 pointsQID241:Which of the following statements is/are correct in the insurer’s view of the term risk?
CorrectAll the statements are true. The answer is D.
IncorrectAll the statements are true. The answer is D.
Hint
References:1.1.3
- Question 172 of 262
172. Question
1 pointsQID238:As a separated field of knowledge and research, measures of risk handling include:
i. Risk avoidance
ii. Loss prevention
iii. Loss reduction
iv. Risk financingCorrectThere are several ways to manage risks, including:
1) risk avoidance
2) loss prevention
3) loss reduction
4) risk transfer
5) risk financingThe answer is D.
IncorrectThere are several ways to manage risks, including:
1) risk avoidance
2) loss prevention
3) loss reduction
4) risk transfer
5) risk financingThe answer is D.
Hint
References:1.1.3
- Question 173 of 262
173. Question
1 pointsQID237:The term “risk management” can be described as:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 174 of 262
174. Question
1 pointsQID236:When insurers deal with “risk management”, which of the following is relevant?
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.
Hint
References:1.1.3
- Question 175 of 262
175. Question
1 pointsQID239:In investment terminology, the term “risk management” refers to:
CorrectIn the world of banking and other financial services outside insurance, the term “risk management” is probably used with reference to investment and other speculative risks. The answer is B.
IncorrectIn the world of banking and other financial services outside insurance, the term “risk management” is probably used with reference to investment and other speculative risks. The answer is B.
Hint
References:1.1.3
- Question 176 of 262
176. Question
1 pointsQID235:As a separated field of knowledge and research, the term “risk management” is often used. When insurers use this term:
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is B.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is B.
Hint
References:1.1.3
- Question 177 of 262
177. Question
1 pointsQID234:As a field of science and research, risk management:
CorrectRisk management is a term which is used with different meanings:
In the world of banking and other financial services outside insurance, it means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is C.
IncorrectRisk management is a term which is used with different meanings:
In the world of banking and other financial services outside insurance, it means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is C.
Hint
References:1.1.3
- Question 178 of 262
178. Question
1 pointsQID65:Which of the following is a correct statement of the insurer’s risk management?
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is D.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is D.
Hint
References:1.1.3
- Question 179 of 262
179. Question
1 pointsQID8:When insurers use the term “risk management”, it represents:
Correct“Risk management” is a term which is used with different meanings:
(a) in the world of banking and other financial services outside insurance, it is
probably used with reference to investment and other speculative risks;
(b) insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only. Thus, when insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure.
The answer is A.Incorrect“Risk management” is a term which is used with different meanings:
(a) in the world of banking and other financial services outside insurance, it is
probably used with reference to investment and other speculative risks;
(b) insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only. Thus, when insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure.
The answer is A.Hint
References:1.1.3
- Question 180 of 262
180. Question
1 pointsQID242:Which of the following statements about risk management is true from a scientific and research perspective?
CorrectRisk management is a term which is used with different meanings:
In the world of banking and other financial services outside insurance, it means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is C.
IncorrectRisk management is a term which is used with different meanings:
In the world of banking and other financial services outside insurance, it means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is C.
Hint
References:1.1.3
- Question 181 of 262
181. Question
1 pointsQID254:In the field of knowledge and research, its branch of management is able to deal with risks. The steps involved are to identify and:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 182 of 262
182. Question
1 pointsQID231:Which of the following statements about “risk management” is true?
CorrectInsurance is a method of risk transfer under risk management. The answer is A.
IncorrectInsurance is a method of risk transfer under risk management. The answer is A.
Hint
References:1.1.3
- Question 183 of 262
183. Question
1 pointsQID233:Which of the following is not a correct statement of “risk management”?
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is D.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is D.
Hint
References:1.1.3
- Question 184 of 262
184. Question
1 pointsQID251:Which three steps are included in dealing with the application of risk management?
i. Identify
ii. Quantify
iii. Deal with an institution’s own risks, including risk avoidance and risk transfer, etc
Iv. UnderwritingCorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is A.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is A.
Hint
References:1.1.3
- Question 185 of 262
185. Question
1 pointsQID224:Which of the following statements is/are correct in the insurer’s view of the term risk?
CorrectInsurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only. Insurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring. The answer is D.
IncorrectInsurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only. Insurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring. The answer is D.
Hint
References:1.1.3
- Question 186 of 262
186. Question
1 pointsQID230:The term “risk management” is correctly described as:
CorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. deal with risksRisk management can also be applied to speculative risks.
The answer is D.
IncorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. deal with risksRisk management can also be applied to speculative risks.
The answer is D.
Hint
References:1.1.3
- Question 187 of 262
187. Question
1 pointsQID9:Which of the following statements is true about the term “risk management”?
Correct“Risk management” is a term which is used with different meanings:
(a) in the world of banking and other financial services outside insurance, it is
probably used with reference to investment and other speculative risks;
(b) insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only. Thus, when insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure.
(c) as a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to identify, quantify and deal with risks that threaten an organisation.
The answer is C.Incorrect“Risk management” is a term which is used with different meanings:
(a) in the world of banking and other financial services outside insurance, it is
probably used with reference to investment and other speculative risks;
(b) insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only. Thus, when insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure.
(c) as a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to identify, quantify and deal with risks that threaten an organisation.
The answer is C.Hint
References:1.1.3
- Question 188 of 262
188. Question
1 pointsQID12:Which of the following statements relates to what insurance companies refer to the word “risk”?
i. People are worried about the loss
ii. The property at risk that they are considering insuring
iii. The person at risk that they are insuring
iv. Uncertainty concerning a potential lossCorrectInsurance companies may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insured
The answer is D.IncorrectInsurance companies may use the word “risk” with other meanings, including:
1. uncertainty concerning a potential loss
2. the property or person at risk that they are insuring or considering insuring
3. the peril (i.e. cause of loss)insured
The answer is D.Hint
References:1.1.3
- Question 189 of 262
189. Question
1 pointsQID257:As a category of research and practice, risk management:
CorrectIn the world of banking and other financial services outside insurance, risk management means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is A.
IncorrectIn the world of banking and other financial services outside insurance, risk management means investment and other speculative risks.
For insurance companies, they may consider it as pure risks, even restrict it to insured risks only.The answer is A.
Hint
References:1.1.3
- Question 190 of 262
190. Question
1 pointsQID256:There are three main steps in the application of “risk management”. The third one is to deal with an institution’s own risks. Before that, the other two steps are to identify and:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 191 of 262
191. Question
1 pointsQID252:As a separate field of knowledge and research, the recognized steps of “risk management” include:
i. Identify
ii. Quantify
iii. Identify the possible cause of loss/quantify risks
iv. Distinguish between pure risks and speculative risksCorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is A.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is A.
Hint
References:1.1.3
- Question 192 of 262
192. Question
1 pointsQID253:The three main steps of risk management are to identify risks, deal with risks and:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 193 of 262
193. Question
1 pointsQID243:Which three of the following statements of risk management are incorrect?
i. Risk management applies only to insurance industry
ii. Insurance is a part of risk management
iii. Risk management is exactly the same in financial services institutions and insurance companies
iv. Risk management is understood equally by insurance companies and policyholdersCorrectInsurance is a method of risk transfer under risk management. The answer is B.
IncorrectInsurance is a method of risk transfer under risk management. The answer is B.
Hint
References:1.1.3
- Question 194 of 262
194. Question
1 pointsQID250:When insurers talk about “risk management”, which of the following may be the ways or means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure?
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
Hint
References:1.1.3
- Question 195 of 262
195. Question
1 pointsQID249:A separate field of knowledge and research to identify, quantify and deal with risks that may threaten an organization is called:
CorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management, steps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
IncorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management, steps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
Hint
References:1.1.3
- Question 196 of 262
196. Question
1 pointsQID247:Which of the following best describes what the general insurer means by “risk management”?
CorrectInsurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is D.
IncorrectInsurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is D.
Hint
References:1.1.3
- Question 197 of 262
197. Question
1 pointsQID246:Which of the following cannot be the insurer’s understanding or application of risk management?
CorrectInsurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only. The answer is B.
IncorrectInsurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only. The answer is B.
Hint
References:1.1.3
- Question 198 of 262
198. Question
1 pointsQID245:To consider the possibility of improving the insured property’s potential loss, the insurer will use the word:
CorrectInsurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is B.
IncorrectInsurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is B.
Hint
References:1.1.3
- Question 199 of 262
199. Question
1 pointsQID244:Understanding or application of risk management from an insurer’s perspective:
CorrectInsurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only. The answer is B.
IncorrectInsurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only. The answer is B.
Hint
References:1.1.3
- Question 200 of 262
200. Question
1 pointsQID255:The relationship between risk management and insurance is:
CorrectInsurance is a method of risk transfer under risk management. The answer is A.
IncorrectInsurance is a method of risk transfer under risk management. The answer is A.
Hint
References:1.1.3
- Question 201 of 262
201. Question
1 pointsQID200:The methods of improving the insured loss potential of the risks the insurers are insuring are called:
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.
Hint
References:1.1.3
- Question 202 of 262
202. Question
1 pointsQID207:Which of the following statements about risk management is incorrect?
Correct“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is A.
Incorrect“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is A.
Hint
References:1.1.3
- Question 203 of 262
203. Question
1 pointsQID206:Which of the following statements may be the insurer’s understanding of the term “risk management”?
Correct“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is B.
Incorrect“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is B.
Hint
References:1.1.3
- Question 204 of 262
204. Question
1 pointsQID205:Risk management may be said to be that branch of management. It helps to deal with risks that threaten an organisation by initially identify and _____ the risks.
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 205 of 262
205. Question
1 pointsQID204:Risk management includes:
i. Quantify
ii. Identify
iii. Deal with risks
iv. Determining speculative risks/pure risksCorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 206 of 262
206. Question
1 pointsQID203:As a separate field of knowledge and research, risk management includes:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
Hint
References:1.1.3
- Question 207 of 262
207. Question
1 pointsQID208:As a separated field of knowledge and research, risk management refers to:
CorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
IncorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
Hint
References:1.1.3
- Question 208 of 262
208. Question
1 pointsQID201:Which three of the following statements may be the insurer’s understanding of “risk management”?
i. It only applies to speculative risks
ii. It refers almost exclusively to pure risks
iii. Insurers manage insurable risks only
iv. It may reduce the potential loss of the insured riskCorrectInsurance companies will probably use the term of “risk management” only in relation to pure risks, but they may well restrict it even further to insured risks only. Thus,
when insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.IncorrectInsurance companies will probably use the term of “risk management” only in relation to pure risks, but they may well restrict it even further to insured risks only. Thus,
when insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.Hint
References:1.1.3
- Question 209 of 262
209. Question
1 pointsQID198:As an independent subject, risk management:
CorrectInsurance is a method of risk transfer under risk management. The answer is C.
IncorrectInsurance is a method of risk transfer under risk management. The answer is C.
Hint
References:1.1.3
- Question 210 of 262
210. Question
1 pointsQID199:Which of the following statements is true?
CorrectInsurance is a method of risk transfer under risk management. The answer is A.
IncorrectInsurance is a method of risk transfer under risk management. The answer is A.
Hint
References:1.1.3
- Question 211 of 262
211. Question
1 pointsQID197:Which of the following is true about risk management?
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
Hint
References:1.1.3
- Question 212 of 262
212. Question
1 pointsQID195:In risk management, the general steps considered to be risk management are:
i. Identify
ii. Quantify
iii. Deal with risks
iv. Distinguish speculative risks from fundamental risksCorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
Hint
References:1.1.3
- Question 213 of 262
213. Question
1 pointsQID229:”Installing an automatic sprinkler system” is an example of:
CorrectInstalling an automatic sprinkler system may reduce the damage caused by fire. The answer is C.
IncorrectInstalling an automatic sprinkler system may reduce the damage caused by fire. The answer is C.
Hint
References:1.1.3
- Question 214 of 262
214. Question
1 pointsQID226:As an independent subject, risk management:
CorrectInsurance is a method of risk transfer under risk management. The answer is C.
IncorrectInsurance is a method of risk transfer under risk management. The answer is C.
Hint
References:1.1.3
- Question 215 of 262
215. Question
1 pointsQID196:The three steps of risk management include identify, quantify and:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is D.
Hint
References:1.1.3
- Question 216 of 262
216. Question
1 pointsQID202:Risk management:
Correct“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is D.
Incorrect“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is D.
Hint
References:1.1.3
- Question 217 of 262
217. Question
1 pointsQID222:In the field of knowledge and research, risk management is about managing:
CorrectIn the world of banking and other financial services outside insurance, risk management is probably used with reference to investment and other speculative risks. Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only. The answer is C.
IncorrectIn the world of banking and other financial services outside insurance, risk management is probably used with reference to investment and other speculative risks. Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only. The answer is C.
Hint
References:1.1.3
- Question 218 of 262
218. Question
1 pointsQID209:For insurance companies, the term “risk management” means:
CorrectInsurance companies will probably use the term “risk management” only in relation to pure risks, but they may well restrict it even further to insured risks only.
Steps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
IncorrectInsurance companies will probably use the term “risk management” only in relation to pure risks, but they may well restrict it even further to insured risks only.
Steps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
Hint
References:1.1.3
- Question 219 of 262
219. Question
1 pointsQID227:Which of the following is true?
CorrectInsurance is a method of risk transfer under risk management. The answer is A.
IncorrectInsurance is a method of risk transfer under risk management. The answer is A.
Hint
References:1.1.3
- Question 220 of 262
220. Question
1 pointsQID228:As an independent subject, risk management:
CorrectInsurance is a method of risk transfer under risk management. The answer is D.
IncorrectInsurance is a method of risk transfer under risk management. The answer is D.
Hint
References:1.1.3
- Question 221 of 262
221. Question
1 pointsQID225:Which of the following statements is true about the term “risk management”?
CorrectIn the world of banking and other financial services outside insurance, risk management is probably used with reference to investment and other speculative risks.
Insurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only.
Steps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
IncorrectIn the world of banking and other financial services outside insurance, risk management is probably used with reference to investment and other speculative risks.
Insurance companies will probably use the term risk management only as pure risks, but they may well restrict it even further to insured risks only.
Steps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is B.
Hint
References:1.1.3
- Question 222 of 262
222. Question
1 pointsQID223:In the field of knowledge and research, risk management includes identify, quantify and:
CorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is A.
IncorrectSteps of risk management are:
i. identify
ii. quantify
iii. deal with risksThe answer is A.
Hint
References:1.1.3
- Question 223 of 262
223. Question
1 pointsQID221:Risk management does not include:
Correct(i) is risk avoidance.
Insurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure.
(D) are steps of risk management.
The answer is C.
Incorrect(i) is risk avoidance.
Insurers explain “risk management” as reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure.
(D) are steps of risk management.
The answer is C.
Hint
References:1.1.3
- Question 224 of 262
224. Question
1 pointsQID220:Which of the following is an incorrect statement of risk management?
CorrectInsurance is a method of risk transfer under risk management. The answer is D.
IncorrectInsurance is a method of risk transfer under risk management. The answer is D.
Hint
References:1.1.3
- Question 225 of 262
225. Question
1 pointsQID215:Which of the following statements about risk management is true from a scientific and research perspective?
Correct“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is C.
Incorrect“Risk management” is a term which is used with different meanings:
1) In the world of banking and other financial services outside insurance, it is probably used with reference to investment and other speculative risks.
2) Insurance companies will probably use the term only in relation to pure risks, but they may well restrict it even further to insured risks only.The answer is C.
Hint
References:1.1.3
- Question 226 of 262
226. Question
1 pointsQID210:The situation of considering to improve the insured loss potential of the “risks” is called:
CorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.
IncorrectWhen insurers talk about “risk management”, they could well be referring to ways and means of reducing or improving the insured loss potential of the “risks” they are insuring, or being invited to insure. The answer is C.
Hint
References:1.1.3
- Question 227 of 262
227. Question
1 pointsQID211:Which of the following statements is true?
CorrectInsurance is a method of risk transfer under risk management. The answer is A.
IncorrectInsurance is a method of risk transfer under risk management. The answer is A.
Hint
References:1.1.3
- Question 228 of 262
228. Question
1 pointsQID219:Which of the following statements about risk management is true?
CorrectAll statements about the “risk management” are true. The answer is D.
IncorrectAll statements about the “risk management” are true. The answer is D.
Hint
References:1.1.3
- Question 229 of 262
229. Question
1 pointsQID216:If risk is regarded as an independent discipline with its own knowledge and research methods, “risk management” means:
CorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
IncorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. deal with risksThe answer is C.
Hint
References:1.1.3
- Question 230 of 262
230. Question
1 pointsQID217:Which of the following involves identify, quantify and deal with the risks that threaten a company, and also is a separate field of knowledge and research?
CorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. Deal with risksThe answer is C.
IncorrectAs a separate field of knowledge and research, risk management may be said to be that branch of management which seeks to:
i. identify
ii. quantify
iii. Deal with risksThe answer is C.
Hint
References:1.1.3
- Question 231 of 262
231. Question
1 pointsQID218:In investment terminology, the term “risk management” refers to which of the following aspects of risk management?
CorrectIn the world of banking and other financial services outside insurance, “risk management” is probably used with reference to investment and other speculative risks. The answer is B.
IncorrectIn the world of banking and other financial services outside insurance, “risk management” is probably used with reference to investment and other speculative risks. The answer is B.
Hint
References:1.1.3
- Question 232 of 262
232. Question
1 pointsQID274:Which of the following is a primary rather than secondary benefit or function of insurance?
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
Hint
References:1.2.(a)
- Question 233 of 262
233. Question
1 pointsQID286:When disasters occur, insurance can provide financial compensation for the insured, which is:
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is B.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is B.
Hint
References:1.2.(a)
- Question 234 of 262
234. Question
1 pointsQID284:Insurance can provide financial compensation to the insured through premium payment. What does this call?
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. This is the primary function of insurance. The answer is A.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. This is the primary function of insurance. The answer is A.
Hint
References:1.2.(a)
- Question 235 of 262
235. Question
1 pointsQID282:Which of the following is the primary function/benefit of insurance?
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is B.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is B.
Hint
References:1.2.(a)
- Question 236 of 262
236. Question
1 pointsQID280:Insurance is essentially a “risk transfer mechanism”:
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
Hint
References:1.2.(a)
- Question 237 of 262
237. Question
1 pointsQID279:To provide financial compensation to the insured victims of an insured event, which may be described as:
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
Hint
References:1.2.(a)
- Question 238 of 262
238. Question
1 pointsQID277:Which of the following are the primary functions/benefits of insurance rather than ancillary functions?
i. Transfer an individual’s potential loss to the insurer
ii. Loss control/prevention
iii. Savings/investments
iv. Enables businesses to survive major fires, liabilities, etcCorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. On the commercial side, this enables businesses to survive major fires, liabilities, etc. The answer is C.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. On the commercial side, this enables businesses to survive major fires, liabilities, etc. The answer is C.
Hint
References:1.2.(a)
- Question 239 of 262
239. Question
1 pointsQID276:Does insurance bring benefits to society?
CorrectInsurance contributes to society directly or
indirectly in many different ways. These will include employment, financial services, loss prevention and loss reduction, etc. The answer is B.IncorrectInsurance contributes to society directly or
indirectly in many different ways. These will include employment, financial services, loss prevention and loss reduction, etc. The answer is B.Hint
References:1.2.(a)
- Question 240 of 262
240. Question
1 pointsQID275:Which of the following is the primary benefit of insurance?
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
Hint
References:1.2.(a)
- Question 241 of 262
241. Question
1 pointsQID281:To provide financial compensation to the insured after the loss is:
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is B.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is B.
Hint
References:1.2.(a)
- Question 242 of 262
242. Question
1 pointsQID273:Insurance is basically:
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
Hint
References:1.2.(a)
- Question 243 of 262
243. Question
1 pointsQID272:Does insurance contribute to society?
CorrectInsurance contributes to society directly or
indirectly in many different ways. These will include employment, financial services, loss prevention and loss reduction, etc. The answer is B.IncorrectInsurance contributes to society directly or
indirectly in many different ways. These will include employment, financial services, loss prevention and loss reduction, etc. The answer is B.Hint
References:1.2.(a)
- Question 244 of 262
244. Question
1 pointsQID271:The function of insurance is to:
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is C.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is C.
Hint
References:1.2.(a)
- Question 245 of 262
245. Question
1 pointsQID270:Which of the following is a primary benefit of insurance rather than an ancillary benefit?
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. The answer is A.
Hint
References:1.2.(a)
- Question 246 of 262
246. Question
1 pointsQID268:Risk transfer, that is, to transfer the potential financial loss of the individual to the insurer, which can be called as:
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
Hint
References:1.2.(a)
- Question 247 of 262
247. Question
1 pointsQID260:Which of the following is a primary function of insurance?
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is A.
Hint
References:1.2.(a)
- Question 248 of 262
248. Question
1 pointsQID263:Concept of “risk transfer mechanism” :
CorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is B.
IncorrectInsurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The answer is B.
Hint
References:1.2.(a)
- Question 249 of 262
249. Question
1 pointsQID285:Provide employment opportunities, loss prevention and savings/investments can be described as:
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
Hint
References:1.2.(b)
- Question 250 of 262
250. Question
1 pointsQID293:Financial services, employment, savings/investments are insurance’s:
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
Hint
References:1.2.(b)
- Question 251 of 262
251. Question
1 pointsQID292:Employment and financial services are also the benefits of insurance, which is called:
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
Hint
References:1.2.(b)
- Question 252 of 262
252. Question
1 pointsQID288:The contribution(s) of insurance to society is/are:
CorrectAll the options are the contributions of insurance to society. The answer is D.
IncorrectAll the options are the contributions of insurance to society. The answer is D.
Hint
References:1.2.(b)
- Question 253 of 262
253. Question
1 pointsQID291:Insurance contributes to society directly or indirectly in many different ways. These are called the secondary or ancillary benefits of insurance, including:
i. Savings/investments
ii. Increase employment opportunities
iii. Encourage speculation
iv. Loss control/preventionCorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
Hint
References:1.2.(b)
- Question 254 of 262
254. Question
1 pointsQID287:Contributions to employment, economic growth and assistance to savings are:
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
Hint
References:1.2.(b)
- Question 255 of 262
255. Question
1 pointsQID278:Which of the following is not an indirect contribution of insurance to society?
CorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. On the commercial side, this enables businesses to survive major fires, liabilities, etc. (D) is a direct contribution. The answer is D.
IncorrectThe primary benefit is seen in the financial compensation made available to insured victims of the various insured events. On the commercial side, this enables businesses to survive major fires, liabilities, etc. (D) is a direct contribution. The answer is D.
Hint
References:1.2.(b)
- Question 256 of 262
256. Question
1 pointsQID269:Which of the following is an ancillary function of insurance rather than a primary function?
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
Hint
References:1.2.(b)
- Question 257 of 262
257. Question
1 pointsQID267:Which of the following is not the ancillary function/benefit of insurance?
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
Hint
References:1.2.(b)
- Question 258 of 262
258. Question
1 pointsQID265:Which of the following is not the ancillary function/benefit of insurance?
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is C.
Hint
References:1.2.(b)
- Question 259 of 262
259. Question
1 pointsQID264:Which of the following are the ancillary functions/benefits of insurance?
i. Employment
ii. Savings/investments
iii. Provide financial compensation for losses
iv. Loss controlCorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
Hint
References:1.2.(b)
- Question 260 of 262
260. Question
1 pointsQID261:Which of the following is an ancillary rather than a primary function of insurance?
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
Hint
References:1.2.(b)
- Question 261 of 262
261. Question
1 pointsQID259:Employment, savings and investments are the ___ of insurance.
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
Hint
References:1.2.(b)
- Question 262 of 262
262. Question
1 pointsQID262:Which of the following is an ancillary function/benefit of insurance rather than a primary function?
CorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
IncorrectAncillary functions/benefits of insurance include:
i. employment
ii. financial service
iii. loss prevention and loss reduction (loss control)
iv. savings/investments
v. economic growth/developmentThe answer is B.
Hint
References:1.2.(b)
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