PLEASE ANSWER ALL QUESTION - Principle of Insurance

Q. Two business owners own identical buildings valued at $80,000. There is an 8% chance each building will be destroyed by a peril in any year. Probability of neither building to be destroyed is ____

True / False , choice the correct option

1. Operational risk is uncertainty concerning the organization's goals, objectives, strengths, weaknesses, and opportunities.

2.the damage that results from negligence must be in the form of property damage.

3.A property owner must inspect the building for the benefit of an invitee and correct any unsafe conditions.

4. Avoidance technique can be used for any loss facing the firm.

5. Operational risk is uncertainty concerning the organization's goals, objectives, strengths, weaknesses, and opportunities.

6. The majority of life insurance company investment are short-term investment.

7.A combined ration of less than 1 (or 100 percent ) indicate an underwriting loss has occurred.

8. One of the main differences between insurance and hedging is that insurance can reduce objective risk, while hedging typically involves only risk transfer and not risk reduction.

9. In a soft insurance market, more retention is used than in a hard insurance market.

10. Companys employees have to be informed about the insurance covered by the external insurer.

11. Under retrospective rating, the class or manual rate is adjusted upward or downward based on past loss history.

12. Enterprise risk management programs do not address financial risks.

13. The reinsurer is the first insurer that provides claims services to the insured after a loss occurs.

14.Captive Insurers can obtain reinsurance.

15.Put options are typically used to hedge against stock price decline.