Business

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

Which of the following is an example of “going bare”? A) Enrique owns

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 […]

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Date: September 3rd, 2020

Which situation is NOT insurable? A) Rita wants to be sure to insure

QUESTION Which situation is NOT insurable? A) Rita wants to be sure to insure her new riverside cottage from flood damage. B) Trevor wants to purchase hurricane insurance to cover the spectacular ocean view he has from his new home. C) Chad wants to be sure his cattle barns in Kansas are covered in the […]

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Date: September 3rd, 2020

Which situation is insurable? A) Eileen wants to insure her sister’s

QUESTION Which situation is insurable? A) Eileen wants to insure her sister’s house against termite damage. B) Billy wants to help his father by holding the workers’ accident insurance for his father’s steel working company. C) Robert wants to take out a policy to protect his nephew’s store from theft. D) Maxine wants to insure […]

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Date: September 3rd, 2020

Which of the following is NOT an insurer’s requirement for coverage?

QUESTION Which of the following is NOT an insurer’s requirement for coverage? A) The policyholder must have an insurable interest. B) The loss should be accidental. C) The loss should be very great. D) The insurer is able to spread the risk widely. E) The loss must be measurable.   ANSWER Answer: C Explanation: C) […]

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Date: September 3rd, 2020

Which of the following is an uninsurable risk? A) theft B) homicide C

QUESTION Which of the following is an uninsurable risk? A) theft B) homicide C) tornados D) wildfires E) wear and tear   ANSWER Answer: E Explanation: E) Personal risks, market risks, and political risks are uninsurable risks. Other uninsurable risks are wars, recessions, strikes, and gradual rusting or wear and tear.

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Date: September 3rd, 2020