QUESTION Bryce hired a contractor to fix a leak in the roof of the musical instrument factory where he worked as facilities manager. The contractor came and removed the rotted wood from the roof, covered the hole with a tarp, and promised to be back the next day. The contractor did not show up for […]
Date: September 3rd, 2020
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.
Date: September 3rd, 2020
QUESTION Copayments are fixed fees that subscribers must pay for the use of specific medical services. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Copayments must be paid by the subscriber at the time of service.
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of pure risk? A) Clayton purchased $200,000 worth of flood insurance for his fencing club that is located on the banks of a river. B) Rory went to a vanity publisher and paid for 5,000 copies of her novel to be printed. The books are in her […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of risk reduction? A) If Samuel’s cell phone rings when Samuel is driving, Samuel finds a safe place to pull off the road and calls the caller back. B) Ashley had not been scuba diving in a few years, so when her friends decided to go on […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of “going bare”? A) Enrique owns a small recording studio. Despite its size, the studio contains thousands of dollars’ worth of equipment. Enrique has chosen to transfer his risk. B) Hetty owns a small nail salon and the building it is in. Because she perceives the risks […]
Date: September 3rd, 2020
