American Insurance Brokers Exam Mock Test
Life. Basic Theory Test Questions (XNUMX)
Which of the following is not considered a definition of risk?
The case of a loss means that the loss has been caused, and it is not a "risk".
Which of the following refers to a condition that increase the chance of a loss?
Hazard, risk, may increase loss.
Which of the following is a situation where there is a possibility of either a loss or a gain?
Speculative Risk (speculative risk), may generate gains, may also lead to losses.
Which of these statements correctly describes risk?
Pure Risk is the only risk that can be insured.
Which of the following is Not an element of an insurable risk?
"Loss must be catastrophic" is not a factor of insurable risk (Insurable Risk)
Which of following describes the increase in the probability of a loss due to an insured's dishonest tendencies?
Morale hazard (moral hazard), describes the insurer's tendency to dishonest, which may increase losses.
All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT
Risk Retention is a risk treatment method in which individuals or units bear their own risks.If "the possibility of loss is unknown", in this case, risk retention cannot be an effective risk management tool.
Which of the following is any situation that presents the possibility of a loss?
Loss exposure represents the possibility of a loss.
Which of the following is considered to be any situation that has the potential for loss?
Loss exposure may cause potential losses.
An insurer having a large number of similar exposure units is considered important because
The more people insured, according to the law of large numbers, the insurance company can more accurately calculate the loss and the corresponding premium for the design.
Which of the following id Not considered to be a define of the term'LOSS'?
The possibility that something will happen is not the definition of "loss."
A situation in which there is ONLY a chance of loss or not loss is a
Pure risk, pure risk, will not bring profitable skills, there are only two possibilities: loss or no loss.
Moral hazard is described as the
Morale hazard (moral hazard), describes the insurer's tendency to dishonest, which may increase losses.
Which of the following best describes the statement ”the more times an event is repeated, the more predictable the outcome becomes”?
The more people insured, according to the law of large numbers (Law of large numbers), the insurance company can more accurately calculate the loss and the corresponding premium for the design.
Which of the following would NOT be accomplished with the purchase of an insurance policy.
After purchasing insurance, risk will not disappear.
A hazard can be best described as
Hazard is the reason or condition that promotes the occurrence of a specific risk accident, increases the chance of loss, or increases the degree of loss.
Restoring an insured to the same condition as before a loss is known as
The principle of compensation is to restore the insured to the same state as before the loss.
