Que. 1 : Q1) Probable Maximum Loss or PML is determined using the maximum Possible Loss (MPL) and which other factor?
1. a) The probability of the peril striking
2. b) The cost of implementing loss reduction techniques
3. c) The cost of the actual loss
4. d) The cost of the consequential loss
Que. 2 : Q2) ___________ referes to the surrender of rights by an Insured against the third party to an Insurance Company that has paid a claim
1. a) Subrogation
2. b) Contribution
3. c) Average
4. d) Agreed value policy
Que. 3 : Q3) Insurance was developed as a result of the existence of
1. a) hazards.
2. b) indemnity.
3. c) loss.
4. d) risk.
Que. 4 : Q4) The goal of risk management is to
1. a) minimize insurance expenditures.
2. b) make certain that uninsured losses do not occur.
3. c) minimize the adverse effects of losses and uncertainty connected with pure risks.
4. d) eliminate financial loss.
Que. 5 : Q5) The risk which can lead to bankruptcy is best described as_______________.
1. a) Financial
2. b) Dynamic
3. c) Catastrophic
4. d) Speculative