Risk Management Multiple Choice Questions and Answers

71. Risk management is synonymous with Insurance mangement

1. True Statement
2. False Statement

72. ACV stands for actual cash value

1. True Statement
2. False Statement

73. The first insurance was established in Anthens

1. True Statement
2. False Statement

74. A risk manager can ignore those pure risk that are not insurable

1. True Statement
2. False Statement

75. There is no hazards of direct competition to conventional banking products

1. True Statement
2. False Statement

76. Without the payment of premium, the insurance contract cannot start

1. True Statement
2. False Statement

77. To be insurable, a risk must have potential losses that are

1. under the control of the insured
2. centrally located
3. predictable
4. unmeasurable

78. Risks that insurance firms will not assume are called

1. uninsurable risks
2. insurable risks
3. endorsements
4. pure risks

79. Which of the following is not a condition for an insurable loss?

1. Using accurate and effective accounting and financial controls to protect the firms inventories and cash from pilfering
2. Establishing a self-insurance health program that covers all employees
3. Installing burglar alarms, security guards, and even guard dogs to protect warehouses from burglary
4. Purchasing and using safety equipment, from hand guards on machinery to goggles and safety shoes for individuals

80. A type of insurance that combines protection with an investment plan is called

1. whole life
2. endowment
3. limited-pay
4. universal