Exam 23: Managing Risk

Match the term with its definition.Some terms may not be used. a.Business interruption insurance b.Business owner's policy c.Commercial general liability insurance d.Disability insurance e.Funds transfer fraud f.Key-person life insurance g.Package policy h.Personnel risks i.Proximate cause j.Reasonable standard k.Workers' compensation insurance -Coverage that provides benefits to a firm upon the death of key personnel

Match the term with its definition.Some terms may not be used. a.Automobile insurance b.Coinsurance clause c.Crime insurance d.Design defect e.Manufacturing defect f.Marketing defect g.Noneconomic damages h.Partially self-funded program i.Proximate cause j.Punitive damages k.Workers' compensation legislation -Laws that obligate an employer to pay employees for injury or illness related to employment,regardless of fault

Match the term with its definition.Some terms may not be used. a.Automobile insurance b.Coinsurance clause c.Crime insurance d.Design defect e.Manufacturing defect f.Marketing defect g.Noneconomic damages h.Partially self-funded program i.Proximate cause j.Punitive damages k.Workers' compensation legislation -Coverage designed to provide liability and physical damage protection for a vehicle

As a general rule,only ______ is insurable.

Matchteh term with its definition.Some terms may not be used. a.Disability insurance b.Personal property c.Proximate cause d.Real property e.Risk control f.Risk financing g.Risk management h.Risk retention i.Risk transfer j.Self-insurance k.Torts -Buying insurance or making contractual arrangements that transfer risk to others

Pure risk is

Business interruption insurance is

Jackie owns a building in a downtown area.Her building is used for office space and is rented to a current business tenant.What kind of risk is associated with this property and is this type of risk insurable?

Perry's business is not in the safest neighborhood.He is concerned about robbery and vandalism,two types of:

Match the term with its definition.Some terms may not be used. a.All-risk approach b.Business risk c.Compensatory damages d.Disability insurance e.Economic damages f.Health maintenance organization g.Market risk h.Named-peril approach i.Peril j.Preferred provider organization k.Pure risk -A managed-care network providing health insurance that is more expensive but offers a broader choice of medical providers

Damage to a building by flooding is an example of

Match the term with its definition.Some terms may not be used. a.Business interruption insurance b.Business owner's policy c.Commercial general liability insurance d.Disability insurance e.Funds transfer fraud f.Key-person life insurance g.Package policy h.Personnel risks i.Proximate cause j.Reasonable standard k.Workers' compensation insurance -The typical standard of care,based on what a reasonable or prudent person would have done under similar circumstances

Harold's ownership of a moving van for use in his business represents which form of risk?

A defect resulting from failure to convey to the user that hazards are associated with a product or to provide adequate instructions on safe product use is known as a(n)

For a person to be found guilty of a negligent act,the negligent act must be the ____ cause of the loss in a tort liability claim.

Match the term with its definition.Some terms may not be used. a.Business interruption insurance b.Business owner's policy c.Commercial general liability insurance d.Disability insurance e.Funds transfer fraud f.Key-person life insurance g.Package policy h.Personnel risks i.Proximate cause j.Reasonable standard k.Workers' compensation insurance -Coverage for general liability loss exposure

A consulting firm that typically does not have clients visit its business location would have minimal premises liability exposure.

Doug works security at a bar and was recently hurt by a patron who was being forcibly removed from the premises.He believes he has been wrongfully treated by the bar.What four elements must be in place for Doug to make a claim that the bistro has been negligent?

Quentin is getting quotes for insurance on his building.His agent recommends he purchase enough to cover the ___________________ even though this amount is more than Quentin paid for it.

Matchteh term with its definition.Some terms may not be used. a.Disability insurance b.Personal property c.Proximate cause d.Real property e.Risk control f.Risk financing g.Risk management h.Risk retention i.Risk transfer j.Self-insurance k.Torts -Coverage that provides benefits upon the disability of a firm's partner or other key employee