瑞达 Rejda 保险教材英文练习题01

21) Which of the following statements about speculative risks is true? A) They are almost always insurable by private insurers. B) They are more easily predictable than pure risks. C) They may benefit society even though a loss occurs. D) They involve only a chance of loss. Answer: C

Question Status: Revised

22) An automobile that is a total loss as a result of a collision is an example of which of the following types of risk? I. Speculative risk II. Diversifiable risk A) I only B) II only

C) both I and II D) neither I nor II Answer: B

Question Status: Revised

23) All of the following are programs to insure fundamental risks EXCEPT A) federally subsidized flood insurance. B) auto physical damage insurance. C) Social Security.

D) unemployment insurance. Answer: B

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24) All of the following are examples of personal risks EXCEPT A) poor health. B) unemployment. C) premature death. D) flood. Answer: D

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25) Which of the following is a reason why premature death may result in economic insecurity? I. Additional expenses associated with death may be incurred.

II. The income of the deceased person's family may be inadequate to meet its basic needs. A) I only B) II only

C) both I and II D) neither I nor II Answer: C

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26) Which of the following are often consequences of long-term disability? I. Continuing medical expenses

II. Loss or reduction of employee benefits A) I only B) II only

C) both I and II D) neither I nor II Answer: C

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27) All of the following are examples of direct property losses EXCEPT A) the theft of a person's jewelry.

B) the destruction of a firm's manufacturing plant by an earthquake.

C) the cost of renting a substitute vehicle while a collision-damaged car is being repaired. D) the vandalism of a person's automobile. Answer: C

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28) The extra expense incurred by a business to stay in operation following a fire is an example of a(n)

A) fundamental risk. B) speculative risk. C) direct loss. D) indirect loss. Answer: D

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29) Which of the following statements about liability risks is (are) true?

I. Future income and assets can be attached to pay judgments if inadequate insurance is carried. II. There is an upper limit on the amount of loss. A) I only B) II only

C) both I and II D) neither I nor II Answer: A

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30) All of the following are burdens to society because of the presence of risk EXCEPT A) The size of an emergency fund must be increased.

B) Individuals may profit from accepting a speculative risk. C) Society is deprived of certain goods and services. D) Mental fear and worry are present. Answer: B

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31) Loss control includes which of the following? I. Loss reduction II. Loss prevention A) I only B) II only

C) both I and II D) neither I nor II Answer: C

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32) Following good health habits can be categorized as A) loss prevention. B) risk retention.

C) noninsurance transfer. D) personal insurance. Answer: A

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33) From the insured's perspective, the use of deductibles in insurance contracts is an example of A) risk transfer. B) loss control. C) risk avoidance. D) risk retention. Answer: D

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34) The use of fire-resistive materials when constructing a building is an example of A) risk transfer. B) loss control. C) risk avoidance. D) risk retention. Answer: B

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35) All of the following statements about risk retention are true EXCEPT A) It may be used intentionally if commercial insurance is unavailable. B) It may be used passively because of ignorance.

C) Its use is most appropriate for low-frequency, high-severity types of risks. D) Its use results in cost savings if losses are less than the cost of insurance. Answer: C

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36) All of the following are methods of noninsurance transfer EXCEPT A) entering into a hold-harmless agreement. B) avoiding dangerous activities.

C) hedging risk using futures contracts. D) incorporating a business. Answer: B

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37) Curt borrowed money from a bank to purchase a fishing boat. He purchased property

insurance on the boat. Curt had difficulty making loan payments because he did not catch many fish, and fish prices were low. Curt intentionally sunk the boat, collected from his insurer, and paid off the loan balance. This scenario illustrates the problem of A) adverse selection. B) moral hazard.

C) nondiversifiable risk. D) attitudinal hazard. Answer: B

Question Status: Revised

38) Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malfunctioned. In addition to the physical damage to the restaurant, Jenna also lost profits that could have been earned while the restaurant was closed for repairs. The lost profits are an example of A) direct loss.

B) nondiversifiable risk. C) speculative risk. D) indirect loss. Answer: D

Question Status: Revised

39) Brad started a pest control business. To protect his personal assets against liability arising out of the business, Brad incorporated the business. Brad's use of the corporate form of organization to shield against personal liability claims illustrates A) fundamental risk. B) noninsurance transfer. C) risk retention. D) objective risk. Answer: B

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