Risk assessment & Insurance

Question 1

safety

Answer 1

the state of being relatively free from harm, danger, injury or damage

Question 2

risk

Answer 2

a measure of the PROBABILITY and SEVERITY of a negative event

Question 3

risk mgmt process steps

Answer 3

1. identification 2. analysis 3. elimination/reduction 4. financing risk 5. administering the process

Question 4

risk cost =

Answer 4

probability x cost

Question 5

residual risk

Answer 5

the risk that remains after preventive measures have been taken

Question 6

threshold risk model

Answer 6

there is a safe level of exposure

Question 7

no threshold risk model

Answer 7

there is no safe level of exposure

Question 8

incident investigation

Answer 8

determine direct causes; contributing factors; help prevent similar accidents; document facts; provide info on costs

Question 9

OSHA incidence rate (TICR) =

Answer 9

(total cases x 200,000) / total hrs worked

Question 10

DART (days away, restricted work, job transfer rate) =

Answer 10

(# DART cases x 200,000) / total hrs worked

Question 11

Severity rate =

Answer 11

(# lost workdays x 200,000) / total hrs worked

Question 12

3 sections of an insurance contract

Answer 12

declarations, conditions, exclusions

Question 13

warranty

Answer 13

performance regarding implied or explicit claims

Question 14

negligence

Answer 14

conduct or behavior of a person or corporation

Question 15

strict liability

Answer 15

unreasonably dangerous characteristics

Question 16

3 defect types

Answer 16

design, manufacturing, instructions/warnings

Question 17

privity

Answer 17

direct relationship between the injured party a and the party whose negligence caused the accident

Question 18

3 parts of a trial

Answer 18

complaint, discovery, trial

Question 19

4 parts of legal contract

Answer 19

agreement, purpose, consideration, competent parties