Question 1

Which of the following is not an example of a Static risk?

Accepted Answer

A)  Earthquake. 
B)  Flood. 
C)  Recession. 
D)  Sinkhole. 
A)  Earthquake. 
B)  Flood. 
C)  Recession. 
D)  Sinkhole. C

Question 2

Intramural sports are an example of which of the following:

Accepted Answer

A)  Economic risk. 
B)  Investment risk. 
C)  Pure risk. 
D)  Speculative risk. 
A)  Economic risk. 
B)  Investment risk. 
C)  Pure risk. 
D)  Speculative risk. C

Question 3

Collision, fire, hurricane, and theft are examples of:

Accepted Answer

A)  Hazard. 
B)  Law of large numbers. 
C)  Peril. 
D)  Risk. 
A)  Hazard. 
B)  Law of large numbers. 
C)  Peril. 
D)  Risk. C

Question 4

The selection of an insurance company includes all of the following except:

Accepted Answer

A)  Cost-benefit analysis. 
B)  Economic cycle. 
C)  Industry ratings. 
D)  Purpose of coverage. 
A)  Cost-benefit analysis. 
B)  Economic cycle. 
C)  Industry ratings. 
D)  Purpose of coverage.

Question 5

An insurance company's appointment of an agent to act on its behalf is an example of:

Accepted Answer

A)  Apparent Authority. 
B)  Express Authority. 
C)  Implied Authority. 
D)  Legal Authority. 
A)  Apparent Authority. 
B)  Express Authority. 
C)  Implied Authority. 
D)  Legal Authority.

Question 6

All of the following are Methods of Settling a Loss except:

Accepted Answer

A)  Actual Cash Value. 
B)  Fair Market Value. 
C)  Guaranteed Replacement Cost. 
D)  Replacement Cost. 
A)  Actual Cash Value. 
B)  Fair Market Value. 
C)  Guaranteed Replacement Cost. 
D)  Replacement Cost.

Question 7

A formal program of risk retention for an individual that takes on the insurance company's role in order to cover the individual's risk is:

Accepted Answer

A)  Adverse selection. 
B)  Formal fund. 
C)  Risk transfer. 
D)  Self-insurance. 
A)  Adverse selection. 
B)  Formal fund. 
C)  Risk transfer. 
D)  Self-insurance.

Question 8

Elements of the Risk Management Process are:
I. Analyze and evaluate potential economic loss exposures.
II. Develop and present recommendations.
III. Implement risk management plan.
IV. Monitor the risk management plan.

Accepted Answer

A)  I, II, IV. 
B)  II, III, IV. 
C)  I, II, III. 
D)  I, II, III, IV. 
A)  I, II, IV. 
B)  II, III, IV. 
C)  I, II, III. 
D)  I, II, III, IV.

Which of the following is not an example of a Static risk?

Intramural sports are an example of which of the following:

Collision, fire, hurricane, and theft are examples of:

The selection of an insurance company includes all of the following except:

An insurance company's appointment of an agent to act on its behalf is an example of:

All of the following are Methods of Settling a Loss except:

A formal program of risk retention for an individual that takes on the insurance company's role in order to cover the individual's risk is:

Elements of the Risk Management Process are: I. Analyze and evaluate potential economic loss exposures. II. Develop and present recommendations. III. Implement risk management plan. IV. Monitor the risk management plan.

Personal Financial Planning

The Statement on Standards in Personal Financial Planning Services

Time Value of Money Concepts

Fundamentals of Personal Financial Planning

Estate Planning Basics

Charitable Gift Planning Basics

Insurance Planning Basics, Part I

Insurance Planning Basics, Part II

Investment Basics

Investment Planning

Planning for Retirement and Financial Independence

Planning Vehicles for Retirement

Elder Planning Basics

Education Planning Basics

Applications in Estate Planning

Applications in Risk Management

Applications in Investment Planning

Applications in Planning for Retirement

Applications in Employee Benefits Planning

Applications in Executive Compensation Planning

Applications in Personal Financial Planning in Special Circumstances

Delivery Models and Regulatory Issues

Filters

Exam 7: Principles of Risk and Insurance

Which of the following is not an example of a Static risk?

Intramural sports are an example of which of the following:

Collision, fire, hurricane, and theft are examples of:

The selection of an insurance company includes all of the following except:

An insurance company's appointment of an agent to act on its behalf is an example of:

All of the following are Methods of Settling a Loss except:

A formal program of risk retention for an individual that takes on the insurance company's role in order to cover the individual's risk is:

Elements of the Risk Management Process are: I. Analyze and evaluate potential economic loss exposures. II. Develop and present recommendations. III. Implement risk management plan. IV. Monitor the risk management plan.

Personal Financial Planning

The Statement on Standards in Personal Financial Planning Services

Time Value of Money Concepts

Fundamentals of Personal Financial Planning

Estate Planning Basics

Charitable Gift Planning Basics

Insurance Planning Basics, Part I

Insurance Planning Basics, Part II

Investment Basics

Investment Planning

Planning for Retirement and Financial Independence

Planning Vehicles for Retirement

Elder Planning Basics

Education Planning Basics

Applications in Estate Planning

Applications in Risk Management

Applications in Investment Planning

Applications in Planning for Retirement

Applications in Employee Benefits Planning

Applications in Executive Compensation Planning

Applications in Personal Financial Planning in Special Circumstances

Delivery Models and Regulatory Issues

Filters