Insurable Risk Management Quiz Questions

$80,000

$120,000

$30,000

$100,000

An employer effects a public liability policy to cover the negligent acts of his employee

A bowling club effecting an all risk policy on bowling balls belonging to its members

An employer effecting a group personal accident policy on all employees who are already entitled to workmen compensation benefits

A finance company effecting a comprehensive motor policy on a car because the hirer under a hire purchase agreement has failed to effect the policy

Are prepared and issued by insurance intermediaries

Contain information used to make underwriting decisions

Are exactly the same with all classes of business

Provide information that the insurers will need to process a claim

Assignment

Indemnity

Subrogation

Contribution

Loss must be definite in terms of time and amount

There must be a large number of people with similar potential for loss available for insurance

Risk must be pure risk

Loss must be catastrophic

Fidelity guarantee insurance

Uberrima fiedes insurance

Consequential loss insurance

Hold harmless insurance

Utmost good faith

Charge of occupation

Inform insurer within a time frame when loss occur

Ensure burglary alarm is in good order

Is the written evidence of the contract

Is the basis of a contract

Is like a cover note that have the same legal status of a actual insurance policy

Forms the basis o a contract

Insurance agents

Lloyds intermediaries

Reinsurers ceding retrocession contracts

Insurance brokers

At loss

At best no gain situation

Either a profit or loss

Neither a profit or loss

Laziness or ignorance

Insurance policy with a deductible

No smoking rule in area which flammable materials are stored

Install fire sprinkler system

A method to transfer risk

A method to prevent or reduce loss if they occur

A non insurance method of retaining a risk

A particular risk that affects a limited group of people

At lloyds of london, underwriting members are not grouped into syndicates

An insurance principle is bound by acts within the actual authority of the agent and not by any authority which the agent ostensibly possess

An agent has certain rights against the principle. They are remuneration, lien, indemnity

The basis if risk transfer is that the losses of a few are met by the contribution of many

Arbitration proceedings are conducted in private

Proceedings are informal and may be less expensive than litigation

The credibility of arbitration may be undermined if proceedings are conducted in a unbiased manner

Verdict is final unless a point of view is raised

Mean exactly the same thing but expressed in a diff manner

Are concepts that are not connected to indemnity in any way

May be considered sub principles and corollaries to principle of indemnity

Will apply in every class of insurance including Life and PA insurance

Not subjected to time limits

The insured's responsibility

Insurer's responsibility

Required to enable loss management measurements

The insurer or agent has a duty to provide proper advice on the subject matter of insurance

The proposer/insured has a duty to state perils to be insured

The proposer/insured is to disclose in the proposal form fully and faithfully all the facts which he/she knows or ought to know

The insurer or agent is entitted to reject the proposal if he finds that the information provided is inadequate

Endorse the payment of premium

Describes and states the ground rules for the policy

States the parties to the contract

Record any changes made to existing policy

Facultative excess of loss

Quota share

Excess of loss

Catastrophe excess of loss

Express authority

Waiver of authority

Usual or customary authority

Implied authority

To eliminate uncertainty of losses and provide peace of mind to the direct insurer

To help stabilize the direct insurer's losses by smoothing the fluctuations from year to year

To help increase the direct insurer's capacity so that he can cover more catastrophe risks

By way of reinsurance the effects of catastrophes can be cushioned

Policy number

Correction of error in description

Period of insurance and renewal date

Signatures of authorized signatories

Providing more service than what is required

Cheating and a criminal offence

Grounds for suspecting or cancelling an agent's registration

When an agent quote a premium rate set by the insurer and keeps the difference

Only important with life and property insurance

Is not always necessary with every kind of insurance

Is required to be present at one time or another with all insurances

Is only applicable if the financial loss can be measured with exact precision

I, II, III

II & III

II, III, IV

All