Risk Management Multiple Choice Questions and Answers

11. Purchasing insurance is a technique used to

1. assume risk
2. shift risk
3. reduce risk
4. avoid risk

12. Dr. Robins chose to stop practicing when malpractice insurance premiums became too high for him to afford. He is managing risk by .................. risk

1. assuming
2. reducing
3. avoiding
4. transferring

13. Collision insurance is a type of

1. automobile physical damage insurance
2. bodily injury liability coverage
3. property damage liability coverage
4. comprehensive insurance

14. Bailment is an agreement between a person ...............who owns or lawfully possesses goods and another person ,............... who is given possession of the goods for a specific purpose

1. baliee, bailor
2. endorser, endorsee
3. bailor, bailee
4. none of above

15. Upon the death of the insured, who receives the proceeds of the life insurance policy?

1. beneficiaries
2. actuaries
3. policyholders
4. recipients

16. ...............is a memorandum specifying some of the details of the property or liability policy to be issued by the company

1. binder
2. subrogation
3. indemnity
4. endorsement

17. 1) One of the most important reason for considering bancassurance by bank is increased ROA. 2) Insurers operate through bansassurance, own and control relationships with customers.Which of the above two statement is not correct.

1. both 1 & 2
2. only 1
3. only 2
4. none of the above.

18. Unemployment can result from:

1. Business cycle downsizing
2. Seasonal factors
3. Imperfection in Labor market
4. All of the above

19. Most firms shift their risks by

1. buying an insurance policy
2. establishing a self-insurance fund
3. establishing a safety program
4. installing smoke alarms

20. Which of the following is the challenge for bancassurance in India

1. challenge in work culture
2. effective mining of the database
3. threat of cannibalization
4. all of above