瑞达 Rejda 保险教材英文练习题02.docVIP

Principles of Risk Management and Insurance, 11e (Rejda) Chapter 2 Insurance and Risk 1) All of the following are characteristics of insurance EXCEPT A) risk avoidance. B) pooling of losses. C) payment of fortuitous losses. D) indemnification. Answer: A Question Status: Previous Edition 2) Which of the following is implied by the pooling of losses? A) sharing of losses by an entire group B) inability to predict losses with any degree of accuracy C) substitution of actual loss for average loss D) increase of objective risk Answer: A Question Status: Previous Edition 3) According to the law of large numbers, what happens as the number of exposure units increases? A) Actual results will increasingly differ from probable results. B) Actual results will more closely approach probable results. C) Nondiversifiable risk will decrease. D) Objective risk will increase. Answer: B Question Status: Revised 4) According to the law of large numbers, what should happen as an insurer increases the number of units insured? A) The amount the insurer expects to pay in claims should decrease. B) Underwriting expenses should decrease. C) Actual results will more closely approach expected results. D) The insurers profitability should become more variable. Answer: C Question Status: Previous Edition 5) Characteristics of a fortuitous loss include which of the following? I. The loss is certain to occur. II. The loss occurs as a result of chance. A) I only B) II only C) both I and II D) neither I nor II Answer: B Question Status: Previous Edition 6) From the viewpoint of the insurer, all of the following are characteristics of an ideally insurable risk EXCEPT A) The loss must be accidental. B) The loss should be catastrophic. C) The premium must be economically feasible. D) There must be a large number of exposure units. Answer: B Question Status: Revised 7) From the standpoint of the insurer, all of the following are characteristics of an ideally insurable risk EXCEPT A) The l