Risk Management

Question 1

What is the difference between Exposures and Perils

Answer 1

Exposures are the sources of risk. Perils are the actual events that can cause a financial loss.

Question 2

What is the first step in Risk Management?

Answer 2

Identify Exposures

Question 3

What is the max dollar amount that will be paid under an insurance policy?

Answer 3

Policy Limit

Question 4

Loss Control is designed to reduce loss frequency and loss severity. True or False

Answer 4

True - For example installing heavy-duty locks on doors, fire alarms and smoke detectors.

Question 5

What type of insurance provides protection beyond the dollar amounts and the perils covered by your insurance policies?

Answer 5

Umbrella Liability Insurance

Question 6

If your car was stolen, what section of your automobile policy would cover the theft?

Answer 6

Comprehensive automobile insurance

Question 7

Contents replacement-cost protection will cover the full replacement cost of any personal property. Yes or No

Answer 7

Yes

Question 8

What type of insurance covers the insured when another driver at fault and does not have adequate coverage?

Answer 8

Uninsured and Underinsured coverage.

Question 9

Which type of insurance protects insured individuals from financial losses suffered by other for which they are responsible?

Answer 9

Liability Insurance