Insurance All Quiz Q/A's (only chapters covered in this folder)

Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of
physical hazards.
speculative risks.
diversifiable risks.
nondiversifiable risks.
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Terms in this set (110)
Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of
physical hazards.
speculative risks.
diversifiable risks.
nondiversifiable risks.
nondiversifiable risks.
Janice mistakenly thought that Medicare covers the cost of a long-term care in a nursing home. So she did not purchase long-term care insurance or save in case she needed a long stay in a nursing home. Janice's treatment of the risk of a long-term stay in a nursing home is best described as
risk control.
planned retention.
risk transfer.
unplanned retention.
unplanned retention.
The use of fire-resistive materials when constructing a building is an example of
risk retention.
risk control.
risk avoidance.
risk transfer.
risk control.
A name that encompasses all of the major risks faced by a business firm is
speculative risk.
enterprise risk.
financial risk.
pure risk.
enterprise risk.
Objective risk is defined as
the relative variation of actual loss from expected loss.
the cause of loss.
the probability of loss.
uncertainty based on a person's mental condition or state of mind.
the relative variation of actual loss from expected loss.
All of the following are examples of personal risks EXCEPT
loss of business income.
poor health.
premature death.
unemployment.
loss of business income.
Which of the following is an example of a commercial risk?
the risk of premature death
the loss of business income
the risk of insufficient retirement income
the risk of being unemployed
the loss of business income
A risk that affects only individuals or small groups and not the entire economy is called a
pure risk.
nondiversifiable risk.
diversifiable risk.
speculative risk.
diversifiable risk.
Some characteristics of the judicial system and regulatory environment increase the frequency and severity of loss. This hazard is called
attitudinal hazard.
moral hazard.
legal hazard.
physical hazard.
legal hazard.
Uncertainty based on a person's mental condition or state of mind is known as
subjective probability.
objective probability.
objective risk.
subjective risk.
subjective risk.