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NEW QUESTION 38
If a firm is said to be risk averse, this means that it
- A. undertakes its own risk management research.
- B. tenders its insurance needs to the market.
- C. carries its own risk wherever possible.
- D. arranges insurance protection wherever possible.
Answer: C
NEW QUESTION 39
If a surveyor is sent lo survey a risk, what does risk primarily refer to in this context?
- A. The policy cover details.
- B. The premises.
- C. The policyholder.
- D. The insured perils.
Answer: B
NEW QUESTION 40
In the event of an insurer including an unclear clause in its household insurance policy, which statute could the policyholder rely upon if there was a contractual dispute?
- A. The Criminal Justice Act 1993.
- B. The Consumer Rights Act 2015.
- C. The Contracts (Rights of Third Parties) Act 1999.
- D. The Data Protection Act 2018.
Answer: B
NEW QUESTION 41
Alex decides to insure his factory. In doing this he is primarily
- A. reducing his physical hazard.
- B. transferring the risk to the insurer.
- C. reducing his moral hazard.
- D. protecting his business against certainty of loss.
Answer: B
NEW QUESTION 42
An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?
- A. Dual insurance.
- B. Reinsurance.
- C. Coinsurance.
- D. Self-insurance.
Answer: C
NEW QUESTION 43
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