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 reimburses a business for the loss of anticipated income following the interruption of business operations

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 primarily against employee dishonesty

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 -A form of punishment beyond compensatory damages that intends to punish wrongdoers for gross negligence or callous disregard and to have a deterrent effect.

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 -The possiblity of losses associated with the assets and earnings potential of a firm

A "prudent person" is also known as:

Morton is discussing with his insurance agent the possibility that he might lose his building and equipment in the event of a fire or windstorm.Should that happen,Morton's company would not be able to earn revenues.These two people are discussing

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 -Land and anything physically attached to the land,such as buildings

A small business customer slips on a wet floor (due to a slow water leak),falls and breaks an arm.Damages that could potentially be awarded to the customer might include:

When considering the feasibility and affordability of insuring small potential losses,which company program will impact this decision?

ACV refers to the depreciated value of a property.

Match the term with its definition.Some terms may not be used. a.Actual cash value b.Aggregate stop loss limit c.Direct loss d.Disability buyout insurance e.Disability insurance f.Indirect loss g.Loss avoidance h.Loss prevention i.Loss reduction j.Replacement value of property k.Specific stop loss limit -A loss arising from an inability to carry on normal operations due to a direct loss of property

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 -The uncertainty associated with an investment decision

Funds transfer fraud provides coverage primarily against employee dishonesty.

Match the term with its definition.Some terms may not be used. a.Actual cash value b.Aggregate stop loss limit c.Direct loss d.Disability buyout insurance e.Disability insurance f.Indirect loss g.Loss avoidance h.Loss prevention i.Loss reduction j.Replacement value of property k.Specific stop loss limit -Keeping a loss from happening

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 -Identifying the specific perils covered in a property insurance policy

Business interruption insurance pays for lost income following the interruption of business operations.

Which term describes land and anything physically attached to the land,such as buildings?

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 -Risks that directly affect individual employees but may have an indirect impact on a business as well

A property insurance policy is used by a business owner to insure buildings and personal property owned but not leased by the business.

A unique,attractive feature of a BOP is that both real and personal property are valued on