English IIQE Paper 1 Topic 1

Financial risks and physical risks are likely to be commercially insurable risks. The answer is C.

The potential loss that risk presents may be:
1. Financial
2. Physical
3. Emotional

The answer is D.

The definition of risk is “uncertainty concerning a potential loss”. The answer is B.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

Financial risks and physical risks are likely to be commercially insurable risks. The answer is A.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

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.

B)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.

The peril means the cause of loss. The answer is A.

The definition of risk is the “uncertainty concerning a potential loss”. The answer is D.

Financial and physical losses are likely to be (commercially) insurable risks. The answer is C.

The peril (risk) means the cause of loss. The answer is A.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

Insurers 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 insuring

The answer is D.

Insurers 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.

The 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.

Insurers 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.

The peril insured means the cause of loss. The answer is A.

The peril insured means the cause of loss. The answer is B.

Insurers 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.

The definition of risk is the “uncertainty concerning a potential loss”. The answer is B.

Insurers 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 A.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

The definition of risk is “uncertainty concerning a potential loss”. The answer is D.

Financial risks and physical risks are likely to be commercially insurable risks. The answer is B.

The potential loss that risk presents may be:
1. Financial
2. Physical
3. Emotional

The answer is D.

The definition of risk is “uncertainty concerning a potential loss”. The answer is D.

The definition of risk is the “uncertainty concerning a potential loss”. The answer is B.

Insurers 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.

Risk is defined as the uncertainty concerning a potential loss. The answer is D.

Emotional risks are likely to be commercially uninsurable risks.
Speculative risks are not normally insurable.

The answer is C.

The potential loss that risk presents may be:
1. Financial
2. Physical
3. Emotional
The answer is D.

Emotional risks are likely to be commercially uninsurable risks. The answer is A.

“Risk” contains a suggestion of loss or danger. We may therefore define it as “uncertainty concerning a potential loss”. The answer is A.

The 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.

Financial risks and physical risks are likely to be commercially insurable risks. The answer is A.

Insurers 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.

Financial risks and physical risks are likely to be commercially insurable risks. The answer is C.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

Financial risks are likely to be commercially insurable risks. The answer is C.

Emotional risks are feelings of grief and sorrow. The answer is C.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

Risk is defined as the uncertainty concerning a potential loss. The answer is C.

Insurers 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.

Insurance 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.

The definition of risk is “uncertainty concerning a potential loss”. The answer is B.

Emotional 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.

Not all risks are commercially insurable. There are several ways to manage risk, including: risk avoidance, loss prevention, loss reduction. The answer is B.

Financial risks and physical risks are likely to be commercially insurable risks. The answer is A.

In insurance, the cause of insured loss or insured property is called Risk.

Financial risks and physical risks are likely to be commercially insurable risks. The answer is C.

Insurers 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.

Emotional risks are likely to be commercially uninsurable risks. The answer is D.

The definition of risk is the “uncertainty concerning a potential loss”. The answer is C.

The potential loss that risk presents may be:
1. Financial
2. Physical
3. Emotional

The answer is D.

Insurers 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.

Insurers 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.

Emotional risks are likely to be uninsurable risks. The answer is B.

The definition of risk is the “uncertainty concerning a potential loss”. The answer is B.

The risk assessed by the surveyor must be insurable. Option A, B and C are commercially insurable risks. The answer is D.

The 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.

The 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.

Particular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.

Pure risks offer the potential of loss only (no gain). The answer is C.

Pure risks offer the potential of loss only (no gain). The answer is C.

We may classify risk under two broad headings (each having two categories) according to:
(a) its potential financial results
(b) its cause and effect

The answer is B.

According to the effect, risks can be considered as being either particular or fundamental. The answer is D.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is A.

If classified from the effect of risk, risks can be divided into fundamental risks and particular risks. The answer is C.

Particular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is B.

Speculative 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.

Most property insurance exclusions are “standard” exclusions (war, nuclear accident, etc.), which are fundamental risks. The answer is C.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is C.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is B.

The 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.

Pure risks offer the potential of loss only (no gain). The answer is B.

The 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.

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.

Speculative risks offer the potential of gain or loss. The answer is D.

Speculative risks offer the potential of gain or loss. The answer is D.

Pure risks offer the potential of loss only (no gain). The answer is B.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is A.

The 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.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is B.

When 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.

According to the potential financial results, risks may be considered as being either pure or speculative. The answer is A.

The majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.

Pure risks offer the potential of loss only (no gain). The answer is D.

Pure risks offer the potential of loss only (no gain). The answer is C.

The 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.

Pure risks offer the potential of loss only (no gain). The answer is D.

Pure risks offer the potential of loss only (no gain). (ii) may have gains. The answer is C.

The 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.

Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.

The majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.

The 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.

According to the classification of financial results, risks can be divided into two types, including speculative risks and pure risks. The answer is A.

According to the classification of financial results, risks can be divided into two types, including pure risks and speculative risks. The answer is A.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.

Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.

Pure 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.

The 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.

The 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.

Pure risks offer the potential of loss only (no gain). The answer is A.

Pure risks offer the potential of loss only (no gain). The answer is B.

Pure risks offer the potential of loss only (no gain). The answer is C.

The majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is B.

Based on their effect, risks can be classified into two types, including particular risks and fundamental risks. The answer is B.

The 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.

If risks classified according to the effect, in addition to fundamental risks, the other are particular risks. The answer is C.

Pure risks offer the potential of loss only (no gain). The answer is C.

The 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.

We may classify risk under two broad headings according to:
(a) its potential financial results
(b) its cause and effect

The answer is B.

Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is C.

The majority of the risks which are insured by commercial insurers are pure risks, and speculative risks are not normally insurable. The answer is C.

Speculative risks offer the potential of gain or loss. Such risks include gambling, business ventures and entrepreneurial activities. The answer is D.

According to the actual scope of effect, risks can be considered as being either particular or fundamental. The answer is B.

(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 risks

The answer is A.

Particular 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.

Pure risks offer the potential of loss only (no gain). The answer is C.

Speculative 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.

Particular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is B.

The 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.

Pure risks offer the potential of loss only (no gain). The answer is B.

Pure risks offer the potential of loss only (no gain). The answer is D.

All statements are true about the fundamental risk. The answer is D.

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 C.

According to the effect, risks can be considered as being either particular or fundamental. The answer is D.

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 B.

The 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.

According to the effect, risks can be considered as being either particular or fundamental. The answer is B.

The 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.

Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is A.

Particular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.

The 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.

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 C.

If classified by cause and effect of risk, the two common categories would be fundamental risks and particular risks. The answer is C.

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. Emotional risks are likely to be commercially uninsurable risks. The answer is A.

The 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.

According to the effect, risks can be classified into particular risks and fundamental risks. The answer is C.

Insurance is a method of risk transfer under risk management. The answer is B.

Not all risks are insurable, such as fundamental risks and speculative risks. The answer is A.

Speculative risks offer the potential of gain or loss. The answer is B.

Pure risks offer the potential of loss only (no gain). The answer is D.

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.

Speculative risks offer the potential of gain or loss. The answer is D.

Particular risks have relatively limited consequences, and affect an individual or a fairly small number of people. The answer is C.

Fundamental risks are not normally insurable because it is considered financially infeasible for insurers to handle them commercially. The answer is A.