risk management

QUESTION 30 If insurers didn't practice underwriting, what would happen? They would save a lot of time and money by not asking all those nosey questions They would make a handsome profit since they would get to sell a lot of insurance to a lot of people The insurance mechanism would become unfeasible The insurance mechanism would become the largest money making venture in the United States Most property owners' combined ratios would decrease dramatically QUESTION 29 Loss prevention and control: eliminate risk are an alternative to self-insurance reduce the probability and severity of loss directly minimize loss adjustment expenses increase the cost of losses QUESTION 28 Which of the following is not a cost to society arising from an insurance system's corporations? Payments for losses caused by fraudulent claims Payments for losses caused by exaggerated claims Use of land, labor, and capital to operate the insurance companies Payments for losses caused by windstorms such as tornadoes Payment for the insurance agent's sales commission QUESTION 24 Assume A a renter is injured by B's alleged negligence, B did not replace burned out light bulbs in a common halway and A is injured when he falls down the apartment building's stairs. B's best line of defense would be: Res ipsa loquitur Assumption of the risk- a reasonable person would get a flashlight or take other precautions B did not intend the injury since the property was rented, the plaintiff always has the duty to change the light bulbs there was no duty owed to the plaintiff QUESTION 21 In order to establish negligence of the defendant, a plaintiff must show all of the following except: A law was broken A legal duty to protect existed An injury resulted directly from a breached duty A person did not act reasonably The defendant breached a legal duty