Introduction to insurance
Q. Does implementing a safety program at work involve risk retention, risk transfer, risk avoidance, or risk reduction?
A. Risk reduction.
Q. What is another name for self insurance? Risk avoidance or risk retention?
A. Risk retention.
Q. What is it called when a business decides to no longer engage in an activity because the activity is too risky? Risk shifting or risk avoidance?
A. Risk avoidance.
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Q. Implementing a loss prevention program or a loss control program is known as? Risk sharing or risk reduction?
A. Risk reduction.
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Q. Which would best describe a safety program? Loss prevention or loss control?
A. Loss prevention.
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Q. Which would best describe a program designed to provide first aid to injured factory workers by having an onsite nurse? Loss prevention or loss control?
A. Loss control.
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Q. Which type of reinsurance program requires one insurer to automatically accept a certain percentage of the business written by another insurer on a long term basis? Treaty Contract or Facultative Contract?
A. Treaty Arrangement.
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Q. Is the insurer that is giving up some of the risk called the ceding company or the reinsuring company?
A. The ceding company.
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Q. Is the insurer that is taking on some of the risk called the ceding company or the reinsuring company?
A. The reinsuring company.
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Q. Which type of reinsurance program results in reinsurance negotiation on a per policy basis? Treaty Contract or Facultative Contract?
A. Facultative Arrangement.
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Q. Facultative Arrangements and Treaty Arrangements are types of what kind of program? Reinsurance program or risk avoidance program?
A. Reinsurance Program.
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Q. Are insureds involved in negotiating reinsurance agreements? Some negotiations or no negotiations?
A. No negotiations.
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