Question 1

The premium charged for workers' compensation insurance is the same for all workers, regardless of their occupation.

Accepted Answer

A) True 
 B)False

Question 2

Most homeowners' insurance policies automatically provide adequate coverage for small home-based businesses.

Accepted Answer

A) True 
 B)False

Question 3

Lyla owns a small jewelry business with only four employees. She opened her business recently and makes just enough to pay her bills each week. Yesterday, just before the end of her first quarter in business, she received a notice from the government indicating that she needed to provide evidence of workers' compensation insurance. Lyla

Accepted Answer

A)   realized she was required to provide this insurance so she immediately got a policy.
B)   is not required to carry workers' compensation because she has less than ten employees.
C)   doesn't need workers' compensation because her business is in Louisiana.
D)   doesn't need workers' compensation because she is not in the construction business.E) A) and B)
F) A) and C)

Question 4

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

Accepted Answer

A)   decide on the spyware software the organization should buy.
B)   send a letter to all of the staff informing them that using e-mail for personal purposes will not be allowed.
C)   remove the playgrounds from all of the locations.
D)   decide which risks the organization should manage.E) C) and D)
F) B) and C)

Question 5

Speculative risk involves a chance of either profit or loss.

Accepted Answer

A) True 
 B)False

Question 6

Product liability insurance covers liability arising out of defective products sold.

Accepted Answer

A) True 
 B)False

Question 7

Workers' compensation insurance

Accepted Answer

A)   covers people who are found liable for professional negligence.
B)   provides coverage against liability arising out of products sold.
C)   is only required by 48 states.
D)   guarantees payment of wages and medical costs for employees who are injured on the job.E) A) and D)
F) A) and C)

Question 8

A policyholder must have a(n)  ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.

Accepted Answer

A)   speculative interest
B)   uncertain stake
C)   unsecured holding
D)   insurable interestE) B) and C)
F) A) and B)

Exam 23: Managing Risk

Workers' compensation insurance

Correct Answer
verified

The premium charged for workers' compensation insurance is the same for all workers, regardless of their occupation.

Correct Answer
verified

Correct Answer
verified

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

Correct Answer
verified

Speculative risk involves a chance of either profit or loss.

Correct Answer
verified

Product liability insurance covers liability arising out of defective products sold.

Correct Answer
verified

A policyholder must have a(n) ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.

Correct Answer
verified

Most homeowners' insurance policies automatically provide adequate coverage for small home-based businesses.

Correct Answer
verified

Exam 23: Managing Risk

Workers' compensation insurance

Correct AnswerverifiedShow Answer

The premium charged for workers' compensation insurance is the same for all workers, regardless of their occupation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

Correct AnswerverifiedShow Answer

Speculative risk involves a chance of either profit or loss.

Correct AnswerverifiedShow Answer

Product liability insurance covers liability arising out of defective products sold.

Correct AnswerverifiedShow Answer

A policyholder must have a(n) ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.

Correct AnswerverifiedShow Answer

Most homeowners' insurance policies automatically provide adequate coverage for small home-based businesses.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified