Insurance and Risk Mgmt

INSURANCE AND RISK MANAGEMENT

Fall 2014 Worksheet 03 Name: _KEY______________

17 Points Chapter 03

TRUE/FALSE: Circle the letter of the correct answer. (1 pt each)

T 1. A risk manager is concerned with selecting the appropriate techniques for treating losses

T 2. A risk manager is concerned with identifying potential losses.

F 3. Once the Risk Manager has a risk management plan in place the job becomes primarily concerned with rewriting and updating the plan.

T 4. A risk manager can retain a certain portion of an exposure to loss by using deductibles and excess insurance.

F 5. Risk management differs from insurance management in that insurance management is a broader concept than risk management.

MATCHING:

__E__ 6. A situation or circumstance, in which a loss is possible, regardless of whether a loss occurs, is called a(n) _____.

__D__ 7. _____ is a special form of planned retention by which part or all of a given loss exposure is retained by the firm.

__G__ 8. _____ refers to techniques that provide for the payment of losses after they occur.

__C__ 9. The _____ describes in some detail the risk management program of a firm.

A. Risk Planning Ledger E. Loss Exposure

B. Risk Control F. Credit Line

C. Risk Management Manual G. Risk Financing

D. Self-Insurance H. Captive Insurer

MULTIPLE CHOICE: Circle the letter of the BEST answer. (1 pt each)

10. Which of the following are functions normally carried out by the Insurance Program Manager?

A. Select Insurance agents and brokers.

B. Submits claims and required supporting documentation to the insurer.

C. Handles loss settlements and...