Risk and insurance management model questions
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Risk and insurance management model questions provide information about risk, types of insurance coverage, and true or false statements about risk management concepts. The document asks the reader to answer questions about how people react to risk, restrictions on risks, differences in insurance coverage periods, and whether risk management statements are true or false. It also provides multiple choice questions about topics like Lloyd's underwriters, general average, underwriting, marine insurance liability risks, old marine insurance forms, definitions of pure risk and speculative risk, and public policy considerations for insurance.
Risk and insurance management model questions
- 1. <br />Risk and insurance management model questions <br />Answer three of the following questions (5 questions)<br />Risk is incidental to life. Explain the various ways in which people may react to risk.
- 2. Mention four of the restrictions imposed on risks.
- 3. Explain how the type of cover available differs according to the period for which the insurance operates.Indicate whether the following sentences are True of False, and correct the wrong sentences :( 15 questions)<br />A risk manager is concerned with the control of his companys insurance programme.
- 4. Calling the insurer the treasurer of the insurer fund is not quite accurate because he is really the owner of the fund.
- 5. Insurance helps to reduce the number or amount of losses by the system of rating and other means.
- 6. The primary function of insurance may be said to be spreading financial losses over the insuring company.
- 7. The final step in the risk management process is monitoring the results of risk management decisions.
- 8. Viable insurance requires loses to be reasonably unexpected because it is impossible to insure any event, which is expected.
- 9. Insurance depends upon the law of large numbers because small claims are not worth insuring.
- 10. All risks cannot e insured commercially because the policy documents would be too complicated.
- 11. The functional classification of insurance means that business is categorised by the subject matter insured.
- 12. A statutory classification of insurance is to be supplied for statistical data supplied to government for control business.Choose the correct answers from the following:( 15 questions)<br />Lloyds underwriters are:
- 13. Independent underwriters based at Lloyds London.
- 14. Not authorised to transact the premium for a proposed risk.
- 15. Individuals employed by Lloyds to assess insurance risks.
- 16. Part of the Lloyds insurance company.
- 18. An ancient practice seeking to share certain losses fairly.
- 19. A system of sharing blame for a collision at sea.
- 20. A policy provision requiring the assured to bear a share of the loss.
- 21. An ancient practice seeking to share certain losses fairly
- 22. Underwriting is a term used to describe:
- 23. A process of determining the premium for a proposed risk.
- 24. A guarantee that the insurer will not suffer heavy losses.
- 25. The assessment of risks proposed for insurance.
- 26. The authorisation of an insurer to transact insurance.
- 27. The insurance of liability risks in marine insurance:
- 28. Forms part of each marine insurance policy.
- 29. Is never found in any marine insurance policy.
- 30. Is a compulsory requirement by law.
- 31. Is mostly insured by Protection and Indemnity Clubs.
- 32. The old SG form used in marine insurance:
- 33. Could be used either for insuring ships or cargo.
- 34. Was quickly replaced by a more modern form.
- 35. Was used only for the insurance of ships.
- 36. Is still the most common form of policy used today.
- 37. The meaning of a pure risk is:
- 38. An insurance where the policyholders honesty is beyond reproach.
- 39. A potentiality which offers only the prospect of a loss.
- 40. A risk which is unlikely to occur.
- 41. A risk which is insurable.
- 42. The definition of a speculative risk is:
- 43. An uncertainty from which profit, loss or status quo might result.
- 44. Launching a new product.
- 45. Loss for a relatively small number.
- 46. A bet on a horse race.
- 47. If an insurance is contrary to public policy:
- 48. Insurers will rarely grant it.
- 49. Both insurer and policyholder are liable to criminal charges.
- 50. It can be issued but under several conditions.
- 51. It would be considered immoral by most members of the public.