Chapter 3

Question 1

Hazard Risk

Answer 1

Fire and other property 
Windstorm 
Theft 
Business Interruption 
Disease

Question 2

Personnel Risk

Property Risk

Liability Risk

Answer 2

Death of a person

due to natural disaster and landslide

Bodily Injury, Entity causes to others

Question 3

Measuring

Management

Answer 3

Frequency
Severity

Avoidance 
Separation
Duplication 
Diversification
Prevention 
Reduction

Question 4

The Role Of Insurance

Advantage

Disadvantage

Answer 4

It provides an offset to organization exposure to large losses
Risk Transfer can lessen the variability of cash flow of the organization

May not provide sufficient coverage on large losses

Question 5

Property Loss Exposure

Liability Loss Exposure

Personnel Loss Exposure

Net Income Losses

Answer 5

Its due to Property exposed to Hurricane like coastal area Its due to Forest area property of building or farm

Its a loss incurs when any executive or CEO faces health issues results in denying or taking responsibility or position
Death, Disease and resignation are other causes

Net Income Losses
Direct : Immediate Effect
Indirect : Long Term Effect

1 Loss of Goodwill
2 Failure to perform
3 Missed Opportunity

Question 6

Property Insurance

Answer 6

Monoline and Package Policies o