The following are factors used to determine whether risk should be retained or transferred:

a. Size and type of organization and its operations

b. Organizations risk-taking philosophy

c. Financial strength and resources

d.Effectiveness of risk management program

e. Cost efficiencies and cost certainty

Group of answer choices

all of the above

a, b, c, d

b, c, d, e

a, c, d, e

All of the following statements about a Self-Insurance Trust are true EXCEPT for:

a. Bank account administered by a trustee

b. Easiest and simplest risk funding vehicle

c. Is not insurance

d. Flexible in that it can write both profit and non-profit risks

e. Limited purpose

Group of answer choices

d

a

b

c

d

Retain the small predictable layers of risk and transfer the unpredictable catastrophic layer of risk. Does this statement promote appropriate risk financing decision making?

True or False

Group of answer choices

True

False

The two types of risk transfer are:

a. Insurance and non-insurance contractual transfer

b. Risk Retention and Risk Transfer

c. Borrowing and Indemnification

d. Insurance and Avoidance

Group of answer choices

a

b

c

d

What does IBNR stand for?

a. Incurred But Not Reported

b. Incident But Not Related

c. Incurred But Not Released

d. Incident By Not Responding

Group of answer choices

a

b

c

d

Which of the following statements are true about a captive insurance company?

a. Highly formalized form of self-insurance

b. Closely held insurance company

c. Flexible in writing multiple lines of coverage

d. Easiest and least costly to implement and manage

e. Elevates the risk management function within the organization

Group of answer choices

a, b, c, e

a, b, c, d

b, c, d, e

a, b, d, e

Commercial General Liability covers injuries to Third Parties on the premises as the result of negligence in connection with the medical aspects of its premises.

True or False?

Group of answer choices

True

False

If a voluntary attending physician who carries their own medical professional liability coverage is named in a claim with the hospital, and if the hospital and physician are found to be negligent, the hospital may be held financially liable for the inadequacy of the physicians limits under the theory of joint and several liabilities.

True or False?

Group of answer choices

True

False

What does IBNR stand for?

a. Incurred But Not Reported

b. Incident But Not Related

c. Incurred But Not Released

d. Incident By Not Responding

Group of answer choices

a

b

c

d

A medical professional liability policy responds to bodily injury allegations as the result of the delivery or failure to deliver medical services. However, it may not respond to allegations for wrongful acts in the administration of a managed care plan.

True or False?

Group of answer choices

True

False