Which one of the following is an element of a loss exposure?
Choose one answer.
A. The verification of risk
B. A cause of loss
C. The probability of a
... [Show More] loss
D. The occurrence of a loss - ANSWER-B
For insurance and traditional risk management purposes, loss exposures are typically
divided into four types. Which one of the following lists those four types?
Choose one answer.
A. Property, liability, personnel, and net income
B. Environmental, professional, property, and liability
C. Property, employers liability, net income, and environmental
D. Property, workers compensation, personnel, and net income - ANSWER-A
Driving carelessly or failing to lock an unattended building are examples of
Choose one answer.
A. Moral hazard.
B. Physical hazard.
C. Legal hazard.
D. Morale hazard. - ANSWER-D
While there are many causes of net income losses, net income losses are usually
associated with
Choose one answer.
A. Loss of goodwill.
B. Liability losses.
C. Property losses.
D. Missed opportunities. - ANSWER-D
A net income loss exposure is a condition that presents the possibility of loss caused by
a reduction in net income. In a given time period, net income equals revenue minus
Choose one answer.
A. Costs of goods sold.
B. Accounts payable and income taxes.
C. Expenses and income taxes.
D. Continuing expenses and outstanding liabilities. - ANSWER-C
An example of an intangible asset that an individual may possess is
Choose one answer.
A. An investment portfolio.
B. A unique skill set.
C. Money that is owed to them.
D. A rental property. - ANSWER-B
Which one of the following financial consequences of loss can be established with a
high degree of certainty fairly soon after the loss occurs?
Choose one answer.
A. The value of a pollution loss
B. The value of a building that has been damaged by fire
C. The value of business lost while the building damaged by fire is being restored
D. The value of liability claims related to a defective product - ANSWER-C
Buildings, investments, patents, and human resources are all examples of
Choose one answer.
A. Causes of loss or perils.
B. Financial consequences of loss.
C. Assets exposed to loss...
Continues... [Show Less]