难忘瑞达Rejda保险教材英文练习题全

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Chapter 2 Insurance and Risk

1) All of the following are characteristics of insurance EXCEPT

A) risk avoidance.

B) pooling of losses.

C) payment of fortuitous losses.

D) indemnification.

Answer: A

Question Status: Previous Edition

2) Which of the following is implied by the pooling of losses?

A) sharing of losses by an entire group

B) inability to predict losses with any degree of accuracy

C) substitution of actual loss for average loss

D) increase of objective risk

Answer: A

Question Status: Previous Edition

3)

According

to

the

law

of

large

numbers,

what

happens

as

the

number

of

exposure

units increases?

A) Actual results will increasingly differ from probable results.

B) Actual results will more closely approach probable results.

C) Nondiversifiable risk will decrease.

D) Objective risk will increase.

Answer: B

Question Status: Revised

4) According to the law of large numbers, what should happen as an insurer

increases the number of units insured?

A) The amount the insurer expects to pay in claims should decrease.

B) Underwriting expenses should decrease.

C) Actual results will more closely approach expected results.

D) The insurer's profitability should become more variable.

Answer: C

Question Status: Previous Edition

5) Characteristics of a fortuitous loss include which of the following?

I.

The loss is certain to occur.

II.

The loss occurs as a result of chance.

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: B

Question Status: Previous Edition

6)

From

the

viewpoint

of

the

insurer,

all

of

the

following

are

characteristics

of an ideally insurable risk EXCEPT

A) The loss must be accidental.

B) The loss should be catastrophic.

C) The premium must be economically feasible.

D) There must be a large number of exposure units.

Answer: B

Question Status: Revised

7)

From

the

standpoint

of

the

insurer,

all

of

the

following

are

characteristics

of an ideally insurable risk EXCEPT

A) The loss must be unintentional.

B) The chance of loss must be calculable.

C) The loss must be indeterminable.

D) The loss must be measurable.

Answer: C

Question Status: Revised

8) Why is a large number of exposure units generally required before a pure

risk is insurable?

A) It prevents the insurer from losing money.

B) It eliminates intentional losses.

C) It minimizes moral hazard.

D) It enables the insurer to predict losses more accurately.

Answer: D

Question Status: Previous Edition

9)

The

requirement

that

losses

should

be

accidental

and

unintentional

in

order

to be insurable results in which of the following?

I.

Decrease in moral hazard

II.

More accurate prediction of future losses

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: C

Question Status: Previous Edition

10) Which of the following is implied by the requirement that a loss should

be determinable and measurable to be insurable?

I.

The loss must be definite as to place.

II.

The loss must be definite as to amount.

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: C

Question Status: Previous Edition

11)

Methods

by

which

insurers

may

minimize

or

avoid

catastrophic

losses

include

which of the following?

I.

The use of reinsurance

II.

Concentrating coverage written in one geographic region

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: A

Question Status: Previous Edition

12)

Which

of

the

following

types

of

risks

best

meets

the

requirements

for

being

insurable by private insurers?

A) market risks

B) property risks

C) financial risks

D) political risks

Answer: B

Question Status: Previous Edition

13) Reasons why market,

financial,

and production

risks are often

uninsurable

include which of the following?

I.

The potential to produce a catastrophic loss is great.

II.

The chance of loss cannot be accurately estimated.

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: C

Question Status: Previous Edition

14) Which of the following types of risks is normally uninsurable by private

insurers?

A) personal risks

B) property risks

C) liability risks

D) market risks

Answer: D

Question Status: Previous Edition

15) Which of the following is a result of adverse selection?

A) The insurer's financial results will be substantially improved.

B) Persons most likely to have losses are also most likely to seek insurance

at standard rates.

C) It is unnecessary for the insurance company to use underwriting.

D) Insurance can be written only by the federal government.

Answer: B

Question Status: Previous Edition

16) The tendency for unhealthy people to seek life or health insurance at

standard rates is an example of

A) moral hazard.

B) fundamental risk.

C) attitudinal hazard.

D) adverse selection.

Answer: D

Question Status: Revised

17)

Which

of

the

following

statements

regarding

insurance

and

gambling

is

(are)

true?

I.

Insurance is used to handle existing pure risks, while gambling creates a

new speculative risk.

II.

Insurance usually involves risk avoidance, while gambling typically

involves only risk reduction.

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: A

Question Status: Previous Edition

18)

In

addition

to

marketing

life

insurance,

life

insurers

typically

sell

which

of the following products?

I.

Retirement annuities

II.

Disability income insurance

A) I only

B) II only

C) both I and II

D) neither I nor II

Answer: C

Question Status: Previous Edition

19) Inland marine insurance provides coverage for

A) goods being shipped on land.

B) premature death of members of the armed forces.

C) goods being shipped on ocean-going vessels.

D) liability exposures of nonprofit organizations.

Answer: A

Question Status: Previous Edition

20) All of the following are classified as casualty insurance EXCEPT

A) life insurance.

B) general liability insurance.

C) workers compensation insurance.

D) burglary and theft insurance.

Answer: A

Question Status: Previous Edition

21) Which of the following is a form of casualty insurance?

A) fire insurance

B) general liability insurance

C) inland marine insurance