Week One

Question 1

Incentive to Cause a loss

Answer 1

Moral Hazard

Question 2

Indifference to a loss due to presence of Insurance

Answer 2

Morale Hazard

Question 3

When the probability of an event to occur is NOT 1 or 0

Answer 3

Uncertainty

Question 4

Encompasses risks faced by a business

Answer 4

Enterprise Risk

Question 5

Loss, no loss

Answer 5

Pure risk

Question 6

Loss, no loss, gain

Answer 6

Speculative risk

Question 7

Affects large groups or nations

Answer 7

Fundamental risk

Question 8

Affects a specific person

Answer 8

Particular risk

Question 9

Insufficient income to retire
Poor health
Unemployment
Premature death

Answer 9

Personal risks

Question 10

Interest rate risk
credit risk
Commodity price risks

Answer 10

Financial risks

Question 11

Financial loss due to damage to property

Loss of use of property

Answer 11

Property risks

Question 12

Held responsible for causing damage to property or person

Answer 12

Liability risks

Question 13

Relative variation of actual loss from expected loss

Answer 13

Objective risk

Question 14

Uncertainty based on a person’s state of mind

Answer 14

Subjective risk

Question 15

Immediate cause of loss

Answer 15

Peril

Question 16

Increases chance of a loss

Answer 16

Hazard