Chapter 1 Flashcards
Imran has arranged a travel policy for his summer holiday in Spain, which includes cover for baggage and personal effects. He also has a home contents policy which includes ‘all risks’ cover for personal possessions whilst anywhere in Europe. This is an example of:
dual insurance.
Examining the entries in a firm’s accident register to look for trends in the incidents reported is an example of:
risk analysis.
Glen owns a number of out of town warehouses and is considering commercial risk management so that he can make informed decisions about the risks faced by his business. What is the final stage of the risk management process?
Risk control.
Lilith’s cottage has a thatched roof. In terms of her buildings insurance, this represents:
a poor physical hazard.
The time delay between the receipt of premiums and the occurrence of claims creates:
a premium reserve.
The different elements of risk brought to the common pool by each of the policyholders are known as:
discrimination factors.
A large haulage company decides to buy third party only motor cover for its fleet of vehicles and makes provision for any damage to its own vehicles to be repaired through its own vehicle maintenance workshops. This is an example of:
self-insurance.
What is an example of a fundamental risk?
War
What is an example of a risk that is not precisely measurable in financial terms?
The sentimental value of a family heirloom.
The purpose of insurance is to:
act as a risk transfer mechanism.
Changes to UK law as a result of the EU Gender Directive affect which of the following types of policies?
Income protection.
A car collision, where there is damage to the two vehicles involved and injury to one of the parties, is an example of a:
particular risk.
Examining the entries in a firm’s accident register to look for trends in the incidents reported is an example of:
risk analysis.
what is an example of a peril in relation to motor insurance?
Lightning strike.
A collective policy is issued when a risk is:
co-insured.
