Multiple Choice

1.Financial risks arise from changing market conditions involving which of the answers listed below

(a)prices

(b)volatility

(c)liquidity

(d)credit risk

(e)foreign exchange risk

(f)All of the above

2.Which is not a part of writing risk management manuals?

(a)identification

(b)monitoring

(c)Assessment

(d)evaluation

(e)Measurement

3.A major component of insurance industry profits is

(a)Interest income

(b)investment income from the payment of premiums

(c)Fee income from insurers

(d)Deferred premium income

(e)All of the above

4.Claims adjusting practices are influenced through:

(a)Regulations

(b)State Governing Body

(c)Policyholder complaints to the state insurance commission.

(d)Insurance Industry

(e)All of the above

5.Employers use law defenses against liability for injury to workers:Which one is not one of the law defenses?

(a)fellow-servant rule

(b)assumption for work place compliance and adherence

(c)assumption of risk doctrine

(d)contributory negligence doctrine

(e)employee risk assumption