Experience rating of the unemployment program has which of the following effects?

Group of answer choices

Penalizes good employers that never fire employees

Encourages short-term layoffs and causes an unstable workforce

Charges employers more when the economy is weak, thus charging for poor experience when companies can least afford it

Provides funds to continue employment instead of dismissing employees

Which of the following is paid for under most workers' compensation systems?

Group of answer choices

Injuries resulting from intoxication

Self-inflicted intentional injuries

Injuries resulting from willful failure to follow safety rules

Injuries occurring from "horse-play" on the job

Workers' compensation covers all of the following lossesexcept:

Group of answer choices

medical expenses resulting from a job-related injury

rehabilitation expenses resulting from a job-related injury

lost wages during a disability that results from job-related injuries

medical expenses resulting from an at-home accident

Which of the following isnota "bailment"?

Group of answer choices

Leaving your car at an auto dealer for repair

Loaning your car to your neighbor

Eating at a restaurant

Shipping goods on a truck

A defined contribution retirement plan can be advantageous for an employer because:

Group of answer choices

the employer may take the tax advantages without funding the plan

cost containment can be effective

only individuals that retire will receive benefits and therefore the costs are reduced

the investment risk is shifted to the employee after the contribution is made

Life income annuities could be beneficial to all of the following personsexcept:

Group of answer choices

individuals just beginning retirement

childless couples without close living relatives

individuals in poor health

couples with adult children who are helping to support their parents

Which of the following life insurance policies would have the lowest premium for a male age 40?

Group of answer choices

Level term

Whole life continuous premium

Whole life paid up at 45

Variable life

Purchasing life insurance on the homemaker:

Group of answer choices

makes no sense because the homemaker generates no income

should not be done because of the moral hazard it creates in the working spouse

makes sense in many cases due to the cost of service replacement and it would help the family maintain a "normal" lifestyle

is very necessary when the homemaker has no minor children

All of the following are rights extended to mortgagees (banks) under the mortgage clause in the HO contractexcept:

Group of answer choices

to sue under the policy in its own name

to foreclose on property if the insured homeowner tries to defraud the insurer

to receive payments from the insurer

to be economically protected

All of the following persons are covered under Larry's PAPexcept:

Group of answer choices

Larry's wife, who borrows a neighbor's car

Larry's son, who borrows a friend's car to get to work

Larry, while driving a car he borrowed from his employer to run an errand

Larry, while driving a borrowed commercial wrecker truck to tow his car to a repair garage

A random variable:

Group of answer choices

is a variable whose future value is known with certainty

can be given a probability of occurrence by the risk manager

is completely outside the control of the risk manager

is not measurable

Which of the following is true about pure risks?

Group of answer choices

They are also known as hazard risks

They are completely unrelated to hazard risks

Are only recently being considered by risk managers

Consist of Property and associated Human Resource risk only

If a private elementary school having a single building were to lose the building in a tornado, it is likely that the largest category of loss would be:

Group of answer choices

property taxes

indirect loss of income and continuing expenses until school returns to its normal status

liability loss

key personnel loss

Which of the following isnotan example of a Catastrophic Loss Event?

Group of answer choices

Hurricane Katrina

Death of Michael Jackson

September 11, 2001 terror attacks

2004 Tsunami in the Indian Ocean