Lesson One Quiz

Question 1 of 13

Which of the following is not an insurable risk?

The loss of business profits while a business is closed for reconstruction after a fire
The loss of capital due to the failure of the insured's business
A loss arising out of damage to a stranger's property because of an insured's carelessness
A loss of property after lightning hit the home and caused damage.

Question 2 of 13

Gambling is a good example of

Pure Risk
Speculative Risk
Insurable Risk
Personal Risk

Question 3 of 13

Risk is

An insured peril
Speculative in nature
The uncertainty regarding a loss
The same as a hazard

Question 4 of 13

Which one is not a way to transfer your risk?

Absorbing all or part of the loss
By way of contract
Hold-Harmless agreements
Insurance

Question 5 of 13

An exceptionally high standard of honesty is implied by

Misrepresentation
Utmost good faith
An Application
Insurable Interest

Question 6 of 13

Which of the following is a Moral Hazard?

A slippery set of stairs
A bare electrical wire
An insured who regularly gets intoxicated and smokes in bed
An improperly installed wood stove

Question 7 of 13

The Proximate Cause is

The first cause in a chain of events that results in a loss
The cause that sets a remote cause of loss into motion
The suspected cause of a loss
The immediate and effective cause of loss

Question 8 of 13

This is separate from the proximate cause in the chain of events leading to a loss.

Proximate cause
Remote cause
Immediate cause
Peril

Question 9 of 13

A peril is

An event that may cause a loss to occur
A condition related to the human element of risk
A condition that may cause a loss to be more severe
An extended coverage usually added to a fire policy

Question 10 of 13

Which of the following is a pre-loss objective?

Externally imposed obligation
Stable Earnings
Sustained Growth
Operational continuity

Question 11 of 13

When we talk about externally imposed obligations we are referencing:

Obligations set out in statute
Contractual obligations
Customer expectations
All of the above

Question 12 of 13

This is the ability to function after a major loss and to return to a pre-loss position.

Social Responsibility
Operational Continuity
Stable Earnings
Sustained Growth

Question 13 of 13

Two major categories used to classify techniques for dealing with exposure

Loss Financing & Risk Management
Loss Financing & Risk Financing
Loss Inspection & Loss Financing
Loss Control & Loss Financing

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