Topic 5

Question 1

What are the types of pure risk

Answer 1

Personal risk
Property risk
Liability risk
Risk due to failure of others

Question 2

What are the natures of risk

Answer 2

Pure

Speculative

Question 3

What are the basic principles of insurance

Answer 3

indemnity
contribution
insurable interest
subrogation
utmost good faith

Question 4

What are the different forms of general insurance?

Answer 4

household property insurance
travel insurance
motor vehicle insurance
professional indemnity insurance

Question 5

What are the characteristics for a risk to be insurable?

Answer 5

law of large numbers
must be fortuitous or accidental
cannot be catastrophic
loss is definition and measurable

Question 6

What are the types of household property insurance

Answer 6

houseowner

householder

Question 7

What does travel insurance cover

Answer 7

personal accident
medical expenses
personal luggage
money
cancellation costs

Question 8

What are the types of motor vehicle insurance

Answer 8

third party policy
third party fire and theft policy
comprehensive cover policy

Question 9

What are the types of risk

Answer 9

pure risk

speculative risk

Question 10

What are the basic rules of the risk management process?

Answer 10

consequences or severity (extent)
probability or frequency
cost of risk management compared to potential loss