瑞达Rejda保险教材英文练习题

1、PrinciplesofRiskManagementandInsurance,11e(Rejda)Chapter1RiskinOurSociety1) Traditionally,riskhasbeendefinedasA) anysituationinwhichtheprobabilityoflossisone.B) anysituationinwhichtheprobabilityoflossiszero.C) uncertaintyconcerningtheoccurrenceofloss.D) theprobabilityofalossoccurring.Answer:CQuestio

2、nStatus:PreviousEdition2) ObjectiveriskisdefinedasA) theprobabilityofloss.B) therelativevariationofactuallossfromexpectedloss.C) uncertaintybasedonaperson'smentalconditionorstateofmind.D) thecauseofloss.Answer:BQuestionStatus:PreviousEdition3) Aninsurancecompanyestimatesitsobjectiveriskfor10,000

3、exposurestobe10percent.Assumingtheprobabilityoflossremainsthesame,whatwouldhappentotheobjectiveriskifthenumberofexposuresweretoincreaseto1million?A) Itwoulddecreaseto1percent.B) Itwoulddecreaseto5percent.C) Itwouldremainthesame.D) Itwouldincreaseto20percent.Answer:AQuestionStatus:PreviousEdition4) U

4、ncertaintybasedonaperson'smentalconditionorstateofmindisknownasA) objectiverisk.B) subjectiverisk.C) objectiveprobability.D) subjectiveprobability.Answer:BQuestionStatus:PreviousEdition5) Thelong-runrelativefrequencyofaneventbasedontheassumptionofaninfinitenumberofobservationswithnochangeintheun

5、derlyingconditionsiscalledA) objectiveprobability.B) objectiverisk.C) subjectiveprobability.D) subjectiverisk.Answer:AQuestionStatus:PreviousEdition6) Whichofthefollowingstatementsaboutaprioriprobabilitiesiscorrect?A) Theyaresubjectiveprobabilitiesbasedonambiguityinthewayprobabilityisperceived.B) Th

6、eyaresubjectiveprobabilitiesthatmayvaryamongindividualsbecauseoffactorssuchasage,gender,education,andtheuseofalcohol.C) Theyareobjectiveprobabilitiesthatcanbedeterminedbydeductivereasoning.D) Theyareobjectiveprobabilitiesthatcanbedeterminedbysubjectivereasoning.Answer:CQuestionStatus:PreviousEdition

7、7) Anindividual'spersonalestimateofthechanceoflossisA) anobjectiveprobability.B) anobjectiverisk.C) asubjectiveprobability.D) anaprioriprobability.Answer:CQuestionStatus:PreviousEdition8) AperilisA) amoralhazard.B) thecauseofaloss.C) aconditionwhichincreasesthechanceofaloss.D) theprobabilitythat

8、alosswilloccur.Answer:BQuestionStatus:PreviousEdition9) AnearthquakeisanexampleofaA) moralhazard.B) peril.C) physicalhazard.D) objectiverisk.Answer:BQuestionStatus:PreviousEdition10) DensefogthatincreasesthechanceofanautomobileaccidentisanexampleofaA) speculativerisk.B) peril.C) physicalhazard.D) mo

9、ralhazard.Answer:CQuestionStatus:PreviousEdition11) FakinganaccidenttocollectinsuranceproceedsisanexampleofaA) physicalhazard.B) objectiverisk.C) moralhazard.D) attitudinalhazard.Answer:CQuestionStatus:Revised12) CarelessnessorindifferencetoalossisanexampleofA) physicalhazard.B) objectiveprobability

10、.C) moralhazard.D) attitudinalhazard.Answer:DQuestionStatus:Revised13) Somecharacteristicsofthejudicialsystemandregulatoryenvironmentincreasethefrequencyandseverityofloss.ThishazardiscalledA) moralhazard.B) physicalhazard.C) attitudinalhazard.D) legalhazard.Answer:DQuestionStatus:Revised14) TaylorTo

11、baccoCompanyisconcernedthatthecompanymaybeheldliableinacourtoflawandorderedtopayalargedamageaward.ThecharacteristicsofthejudicialsystemthatincreasethefrequencyandseverityoflossesareknownasA) moralhazard.B) particularrisk.C) speculativerisk.D) legalhazard.Answer:DQuestionStatus:PreviousEdition15) Aph

12、rasethatencompassesallofthemajorrisksfacedbyabusinessfirmisA) financialrisk.B) speculativerisk.C) enterpriserisk.D) purerisk.Answer:CQuestionStatus:PreviousEdition16) Whichofthefollowingstatementsaboutfinancialriskis(are)true?I) Enterpriseriskdoesnotincludefinancialrisk.J) .Financialriskiseasilyaddr

13、essedthroughthepurchaseofinsurance.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:DQuestionStatus:PreviousEdition17) AllofthefollowingareconsideredfinancialrisksEXCEPTA) thedeclineinthevalueofabondportfoliobecauseofrisinginterestrates.B) increasedcostofproductionbecauseofrisingcommodityprices.

14、C) lossofmoneybecauseofadversemovementsincurrencyexchangerates.D) destructionofaproductionfacilitycausedbyanexplosion.Answer:DQuestionStatus:PreviousEdition18) KatelynwasjustnamedRiskManagerofABCCompany.ShehasdecidedtocreateariskmanagementprogramwhichconsidersalloftherisksfacedbyABC-pure,speculative

15、,operational,andstrategic-inasingleriskmanagementprogram.Suchaprogramiscalleda(n)A) financialriskmanagementprogram.B) enterpriseriskmanagementprogram.C) fundamentalriskmanagementprogram.D) consequentialriskmanagementprogram.Answer:BQuestionStatus:PreviousEdition19) Apureriskisdefinedasasituationinwh

16、ichthereisA) onlythepossibilityoflossornoloss.B) onlythepossibilityofprofit.C) apossibilityofneitherprofitnorloss.D) apossibilityofeitherprofitorloss.Answer:AQuestionStatus:PreviousEdition20) TheprematuredeathofanindividualisanexampleofaA) purerisk.B) speculativerisk.C) fundamentalrisk.D) physicalha

17、zard.Answer:AQuestionStatus:PreviousEdition21) Whichofthefollowingstatementsaboutspeculativerisksistrue?A) Theyarealmostalwaysinsurablebyprivateinsurers.B) Theyaremoreeasilypredictablethanpurerisks.C) Theymaybenefitsocietyeventhoughalossoccurs.D) Theyinvolveonlyachanceofloss.Answer:CQuestionStatus:R

18、evised22) Anautomobilethatisatotallossasaresultofacollisionisanexampleofwhichofthefollowingtypesofrisk?I. SpeculativeriskII. DiversifiableriskA) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:BQuestionStatus:Revised23) AllofthefollowingareprogramstoinsurefundamentalrisksEXCEPTA) federallysubsidiz

19、edfloodinsurance.B) autophysicaldamageinsurance.C) SocialSecurity.D) unemploymentinsurance.Answer:BQuestionStatus:PreviousEdition24) AllofthefollowingareexamplesofpersonalrisksEXCEPTA) poorhealth.B) unemployment.C) prematuredeath.D)flood.Answer:DQuestionStatus:PreviousEdition25) Whichofthefollowingi

20、sareasonwhyprematuredeathmayresultineconomicinsecurity?I) Additionalexpensesassociatedwithdeathmaybeincurred.J) .Theincomeofthedeceasedperson'sfamilymaybeinadequatetomeetitsbasicneeds.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition26) Whichofthefollowingareof

21、tenconsequencesoflong-termdisability?I) ContinuingmedicalexpensesJ) .LossorreductionofemployeebenefitsK) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition27) AllofthefollowingareexamplesofdirectpropertylossesEXCEPTA) thetheftofaperson'sjewelry.B) thedestructionofa

22、firm'smanufacturingplantbyanearthquake.C) thecostofrentingasubstitutevehiclewhileacollision-damagedcarisbeingrepaired.D) thevandalismofaperson'sautomobile.Answer:CQuestionStatus:PreviousEdition28) Theextraexpenseincurredbyabusinesstostayinoperationfollowingafireisanexampleofa(n)A) fundamenta

23、lrisk.B) speculativerisk.C) directloss.D) indirectloss.Answer:DQuestionStatus:PreviousEdition29) Whichofthefollowingstatementsaboutliabilityrisksis(are)true?I) Futureincomeandassetscanbeattachedtopayjudgmentsifinadequateinsuranceiscarried.J) .Thereisanupperlimitontheamountofloss.K) IonlyL) IIonlyM)

24、bothIandIIN) neitherInorIIAnswer:AQuestionStatus:PreviousEdition30) AllofthefollowingareburdenstosocietybecauseofthepresenceofriskEXCEPTA) Thesizeofanemergencyfundmustbeincreased.B) Individualsmayprofitfromacceptingaspeculativerisk.C) Societyisdeprivedofcertaingoodsandservices.D) Mentalfearandworrya

25、represent.Answer:BQuestionStatus:PreviousEdition31) Losscontrolincludeswhichofthefollowing?I) LossreductionJ) .LosspreventionK) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition32) FollowinggoodhealthhabitscanbecategorizedasA) lossprevention.B) riskretention.C) nonins

26、urancetransfer.D) personalinsurance.Answer:AQuestionStatus:Revised33) Fromtheinsured'sperspective,theuseofdeductiblesininsurancecontractsisanexampleofA)risktransfer.B) losscontrol.C) riskavoidance.D) riskretention.Answer:DQuestionStatus:PreviousEdition34) Theuseoffire-resistivematerialswhenconst

27、ructingabuildingisanexampleofA) risktransfer.B) losscontrol.C) riskavoidance.D) riskretention.Answer:BQuestionStatus:PreviousEdition35) AllofthefollowingstatementsaboutriskretentionaretrueEXCEPTA) Itmaybeusedintentionallyifcommercialinsuranceisunavailable.B) Itmaybeusedpassivelybecauseofignorance.C)

28、 Itsuseismostappropriateforlow-frequency,high-severitytypesofrisks.D) Itsuseresultsincostsavingsiflossesarelessthanthecostofinsurance.Answer:CQuestionStatus:PreviousEdition36) AllofthefollowingaremethodsofnoninsurancetransferEXCEPTA) enteringintoahold-harmlessagreement.B) avoidingdangerousactivities

29、.C) hedgingriskusingfuturescontracts.D) incorporatingabusiness.Answer:BQuestionStatus:PreviousEdition37) Curtborrowedmoneyfromabanktopurchaseafishingboat.Hepurchasedpropertyinsuranceontheboat.Curthaddifficultymakingloanpaymentsbecausehedidnotcatchmanyfish,andfishpriceswerelow.Curtintentionallysunkth

30、eboat,collectedfromhisinsurer,andpaidofftheloanbalance.ThisscenarioillustratestheproblemofA) adverseselection.B) moralhazard.C) nondiversifiablerisk.D) attitudinalhazard.Answer:BQuestionStatus:Revised38) Jennaopenedasuccessfulrestaurant.Onenight,aftertherestauranthadclosed,afirestartedwhentheelectri

31、calsystemmalfunctioned.Inadditiontothephysicaldamagetotherestaurant,Jennaalsolostprofitsthatcouldhavebeenearnedwhiletherestaurantwasclosedforrepairs.ThelostprofitsareanexampleofA) directloss.B) nondiversifiablerisk.C) speculativerisk.D) indirectloss.Answer:DQuestionStatus:Revised39) Bradstartedapest

32、controlbusiness.Toprotecthispersonalassetsagainstliabilityarisingoutofthebusiness,Bradincorporatedthebusiness.Brad'suseofthecorporateformoforganizationtoshieldagainstpersonalliabilityclaimsillustratesA) fundamentalrisk.B) noninsurancetransfer.C) riskretention.D) objectiverisk.Answer:BQuestionSta

33、tus:PreviousEdition40) ABCInsuranceCompanyplanstosellhomeownersinsuranceinfiveWesternstates.ABCexpectsthat8homeownersoutofevery100,onaverage,willreportclaimseachyear.ThevariationbetweentherateoflossthatABCexpectstooccurandtherateoflossthatactuallydoesoccuriscalledA)objectiveprobability.B) subjective

34、probability.C) objectiverisk.D) subjectiverisk.Answer:CQuestionStatus:PreviousEdition41) WilliamsCompanyinstalledsmokedetectors,asprinklersystem,andfireextinguishersinitsnewmanufacturingfacility.ThesedevicesareallexamplesofA) losscontrol.B) noninsurancetransfer.C) riskavoidance.D) riskretention.Answ

35、er:AQuestionStatus:PreviousEdition42) TyndalProductsCompanyproducescereal.Thecompanyhasenteredintocontractstodeliver500,000boxesofcerealduringthenext18months.Thecompanyisconcernedthatthepricesoftwoingredients,cornandwheat,mayincreaseoverthenext18months.Thecompanyusedgrainfuturescontractstohedgethepr

36、iceriskassociatedwiththesecommodities.Tyndal'suseofhedgingillustrateswhichriskmanagementtechnique?A) noninsurancetransferB) riskavoidanceC) riskretentionD) riskassumptionAnswer:AQuestionStatus:PreviousEdition43) Cathy'scarhitapatchoficeontheroad.Thecarskiddedofftheroadandhitatree.Thepresence

37、oficeontheroadisbestdescribedasa(n)A) peril.B) subjectiverisk.C) physicalhazard.D) indirectloss.Answer:CQuestionStatus:PreviousEdition44) JimandPaulaFranklinstartedadrycleaningbusiness.Thebusinessmaybesuccessfuloritmayfail.ThetypeofriskthatispresentwheneitheraprofitorlosscouldoccuriscalledA) pureris

38、k.B) subjectiverisk.C) nondiversifiablerisk.D) speculativerisk.Answer:DQuestionStatus:Revised45) Benisconcernedthatifheinjuressomeoneordamagessomeone'spropertyhecouldbeheldlegallyresponsibleandrequiredtopaydamages.ThistypeofriskiscalledaA) speculativerisk.B) liabilityrisk.C) nondiversifiablerisk

39、.D) propertyrisk.Answer:BQuestionStatus:Revised46) MLXDrugCompanywouldliketomarketanewhypertensiondrug.WhiletheFoodandDrugAdministration(FDA)wastestingthedrug,itdiscoveredthatthedrugproducedaharmfulsideeffect.WhenMLXlearnedoftheFDA'stestresult,MLXabandoneditsplantoproduceanddistributethedrug.MLX'sreactionillustratesA) riskavoidance.B) hedging.C) risktransfer.D) riskretention.Answer:AQuestionStatus:PreviousEdition47) ABCHealthInsuranceCompanysellshealthinsuranceinonestate.Recently,thatstate'slegislaturepassedalawf