Test No. 1 (Independent Study 1-3) Flashcards
1
Q
- a) State a simple definition of risk. (2 marks)
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2
Q
b) Explain why pure risk is insurable but speculative risk is not. (10 marks)
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3
Q
c) Explain how losses are caused by perils but also influenced by hazards. (8 marks)
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4
Q
d) Outline the five main steps in the risk management process. (10 marks)
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5
Q
- a) Describe how insurance works to spread risk. (10 marks)
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6
Q
b) Describe the five secondary functions of insurance. (10 marks)
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7
Q
c) Identify ten types of general insurance. (10 marks)
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8
Q
- a) Describe five types of insurance providers. (10 marks)
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9
Q
b) Explain how stock insurance companies earn profit for shareholders. (10 marks)
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10
Q
c) Describe the function of the following departments of insurance companies: (12 marks)
Administration Marketing Accounting and finance Actuarial Underwriting Claims
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11
Q
d) Outline two methods of reinsuring risk and two types of reinsurance. (8 marks)
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