1. What term did we define as uncertainty concerning the occurrence of loss?

2. Dellanie Fragnoli works for Costco. It is Dellanies job to determine the risks that Costco faces, to analyze these risks, to formulate and implement a treatment plan to address these risks, and to monitor the plan and make adjustments as needed. Dellanies job title is:

3. True or False. Indicate if the statement is True (T) or False (F). Each part is worth one half of one point.

1. If an insurance companys combined ratio for 2019 was 0.95, this company

made money on its underwriting activities in 2019. T F

2. Currently, the commercial insurance market is hardening. T F

4. Insurance companies must be careful when marketing their coverages. There is a tendency for those who need insurance the most to seek insurance at the average cost. This tendency leads to higher than anticipated losses unless the insurer considers this tendency and guards against it. This problem in insurance markets is called:

5. Some risk management programs used by larger firms consider all of the risks that the company faces: property risks, liability risks, personnel-related risks, financial risks, strategic risks all the risks. What specific name is given to a risk management program that considers all of the risks that an organization faces?

6. One broad category of pure risks includes property risks, liability risks, and personnel-related loss exposures. This category of risks is called: