Chapter 1 - Principles of Insurance

keeking發表於2011-10-08
APT
Correct
Correct'; document.getElementById('span-quiz-colors774899').bgColor = '#EAFCF0';
Q.1)

Which of the following is a hazard as opposed to a peril?

 
  A. Fire
  B. Lightning
  C. Wet pavement (Your Answer)
  D. Flood
  Explanation
C is correct. Wet pavement is not by itself a cause of loss (or peril), but it increases the chances of automobile collisions, which are a cause of loss.
Wrong
Wrong'; document.getElementById('span-quiz-colors774896').bgColor = '#FFEDED';
Q.2)

Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method?

 
  A. Transfer
  B. Retention
  C. Avoidance (Correct Answer)
  D. Reduction (Your Answer)
  Explanation
C is correct. By not producing the drug, Benson avoids the risk of being sued by consumers who are injured by the drug.
Wrong
Wrong'; document.getElementById('span-quiz-colors774893').bgColor = '#FFEDED';
Q.3) The law of large numbers
 
  A. prohibits insurance with extremely high premiums.
  B. states that there must be a narrow spread of risk for insurance to be effective.
  C. states that the more examples used to develop a statistic, the more reliable the statistic will be. (Correct Answer)
  D. requires all members of society with insurance exposures to purchase insurance. (Your Answer)
  Explanation
C is correct. The law of large numbers says that the more examples used to develop a statistic, the more reliable the statistic will be.
Wrong
Wrong'; document.getElementById('span-quiz-colors774897').bgColor = '#FFEDED';
Q.4)

Because she has always been in good health, Donna decides to cancel her health insurance policy. This is an example of which risk management method?

 
  A. Retention (Correct Answer)
  B. Control
  C. Avoidance
  D. Transfer (Your Answer)
  Explanation
A is correct. By not carrying health insurance, Donna is retaining the risk of financial loss from unexpected medical expenses.
Wrong
Wrong'; document.getElementById('span-quiz-colors774892').bgColor = '#FFEDED';
Q.5)

Which of the following represents a pure risk?

 
  A. Terry places a bet on the outcome of a basketball game.
  B. Margaret's dog is temperamental. She's afraid that it will bite a neighbor someday and she will be held responsible. (Correct Answer)
  C. Sam transfers all of his retirement funds into a stock that he expects to rise in value.
  D. Cindy, along with 32 others, puts $100 into an Indy 500 race pool at work. The person holding the name of the winning driver will win the entire $3,300. (Your Answer)
  Explanation
B is correct. A pure risk is one that involves only the possibility of loss. Choices A, C, and D are examples of speculative risks in which there exists both the possibility of gain and the possibility of loss.
Wrong
Wrong'; document.getElementById('span-quiz-colors774898').bgColor = '#FFEDED';
Q.6)

The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?

 
  A. Physical (Correct Answer)
  B. Moral
  C. Morale
  D. Obvious (Your Answer)
  Explanation
A is correct. Worn tread is a physical condition that reduces Alan's ability to control or stop his vehicle.
Correct
Correct'; document.getElementById('span-quiz-colors774894').bgColor = '#EAFCF0';
Q.7)

LaTonya purchases a house from John. She borrows $75,000 from First City Bank that, along with her $25,000 down payment, equals the $100,000 purchase price of the home. Who has an insurable interest in this home? Choose all that apply.

 
  A. LaTonya
  B. John
  C. LaTonya's son, who would like to inherit the home some day
  D. First City Bank (Your Answer)
  Explanation
A and D are correct. Insurable interest exists when there is an actual economic interest in the safety or preservation of the subject of the insurance from loss or destruction or financial damage or impairment. LaTonya has an insurable interest in the home because she owns it. First City Bank has an insurable interest as long as it carries a mortgage on the home.
Wrong
Wrong'; document.getElementById('span-quiz-colors774895').bgColor = '#FFEDED';
Q.8) Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?
 
  A. Avoidance
  B. Reduction (Correct Answer)
  C. Retention
  D. Transfer (Your Answer)
  Explanation
B is correct. A sprinkler system can reduce the severity of fires, but it does not prevent them altogether.

來自 “ ITPUB部落格 ” ，連結：http://blog.itpub.net/7899089/viewspace-708784/，如需轉載，請註明出處，否則將追究法律責任。

相關文章