Business

Which of the following involves speculative risk? A) boycotts B) hurr

QUESTION Which of the following involves speculative risk? A) boycotts B) hurricanes C) arson D) lightning strikes E) new products   ANSWER Answer: E Explanation: E) Speculative risk involves a chance of either gain or loss. This is the kind of risk that a company takes when it introduces a new product, which may make […]

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Date: September 3rd, 2020

Which insurance principle is correctly paired with its definition? A)

QUESTION Which insurance principle is correctly paired with its definition? A) principle of economically feasible premium: the principle that states that insurers will not pay the insured more in damage claims than the dollar loss actually sustained B) principle of indemnity: the principle that groups that are more apt to need insurance are also those […]

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Date: September 3rd, 2020

Who is most likely to pay the most for life insurance? A) teachers B)

QUESTION Who is most likely to pay the most for life insurance? A) teachers B) construction workers C) crab fishermen D) engineers E) doctors   ANSWER Answer: C Explanation: C) The fatality rate for commercial fishing workers, who are routinely exposed to stormy seas, dangerous equipment, and slippery decks, is 200 fatalities per 100,000.

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Date: September 3rd, 2020

Which type of public insurance are people required to carry? A) crop

QUESTION Which type of public insurance are people required to carry? A) crop insurance B) crime insurance C) flood insurance D) social security insurance E) nuclear accident insurance   ANSWER Answer: D Explanation: D) Most working Americans (and their employers) are required to pay into Social Security, which is a federal social insurance program that […]

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Date: September 3rd, 2020

Which kind of company would be least likely to purchase the pure-risk

QUESTION Which kind of company would be least likely to purchase the pure-risk coverage of green insurance? A) contractors B) energy auditors C) oil companies D) hotels E) recycling companies   ANSWER Answer: C Explanation: C) Green insurance is insurance in which a green contractor who builds a home out of recycled old beams and […]

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Date: September 3rd, 2020

Which of the following is an example of risk avoidance? A) serving on

QUESTION Which of the following is an example of risk avoidance? A) serving only nonalcoholic beverages at a company party B) prohibiting smoking on company property C) requiring regular physical examinations D) providing mandatory safety training E) installing workout rooms   ANSWER Answer: A Explanation: A) An example of not participating in risky activity is […]

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Date: September 3rd, 2020

Which of the following is an example of automobile crash protection?

QUESTION Which of the following is an example of automobile crash protection? A) thermal imaging cameras that enhance drivers’ ability to distinguish objects at night B) cruise controls with a radar sensor that adjusts the distance between you and the car in front of you C) lane departure warning systems such as rumble strip sounds […]

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Date: September 3rd, 2020