Risk Management Quiz | Risk Management Question and Answer for Practice

31. 1) Active risk retention means that the firm is aware of the loss exposure and plans to retain a part or all of it. 2) Passive retention however is the failure to identify a loss exposure, failure to act. Which of the above statement is not correct.

1. 1,2
2. only 2
3. only 1
4. none of the above

32. Which of the following are the principles of Risk Manangement. 1. Principle of risk identification 2. Principle of risk ananlysis 3. Principle of Risk assessment 4. Principle of Risk Control.

1. 1,2,3
2. 1,4
3. 1,3,4
4. 1,2,3,4

33. Which type of insurance policy will protect a business from theft and forgery by its employees?

1. a fidelity bond
2. burglary insurance
3. robbery insurance
4. indemnity insurance

34. A method for reducing the cost of health care by offering the services of doctors and hospitals at discount rates or giving breaks in co-payments and deductibles is offered by

1. a health maintenance organization
2. a major medical plan
3. Medicare
4. a preferred provider organization

35. Higher the percentage of ...............in GDP , lower the insurance penetration

1. agriculture
2. insurance
3. banking
4. all of above

36. ...............contract means that only one party makes a legally enforceable promise

1. aleatory contract
2. unilateral
3. conditional
4. personal

37. Purchasing insurance is a technique used to

1. assume risk
2. shift risk
3. reduce risk
4. avoid risk

38. Dr. Robins chose to stop practicing when malpractice insurance premiums became too high for him to afford. He is managing risk by .................. risk

1. assuming
2. reducing
3. avoiding
4. transferring

39. Collision insurance is a type of

1. automobile physical damage insurance
2. bodily injury liability coverage
3. property damage liability coverage
4. comprehensive insurance

40. Bailment is an agreement between a person ...............who owns or lawfully possesses goods and another person ,............... who is given possession of the goods for a specific purpose

1. baliee, bailor
2. endorser, endorsee
3. bailor, bailee
4. none of above

41. Upon the death of the insured, who receives the proceeds of the life insurance policy?

1. beneficiaries
2. actuaries
3. policyholders
4. recipients

42. ...............is a memorandum specifying some of the details of the property or liability policy to be issued by the company

1. binder
2. subrogation
3. indemnity
4. endorsement

43. 1) One of the most important reason for considering bancassurance by bank is increased ROA. 2) Insurers operate through bansassurance, own and control relationships with customers.Which of the above two statement is not correct.

1. both 1 & 2
2. only 1
3. only 2
4. none of the above.

44. Unemployment can result from:

1. Business cycle downsizing
2. Seasonal factors
3. Imperfection in Labor market
4. All of the above

45. Most firms shift their risks by

1. buying an insurance policy
2. establishing a self-insurance fund
3. establishing a safety program
4. installing smoke alarms