Review test (classes no. 2)
Note: - The aim of the test is to review the material from the last classes. The test won’t be officially evaluated and there won’t be any consequences of solving it - Try to solve the test without looking at the materials from the classes - This is a multiple choice test (in some questions more than one answer might be correct) 1. The morale hazard is: a. a method of risk manipulation, b. external conditions that affect the size of the peril, c. individual response of the insured person caused by the awareness of the insurance coverage, d. all of the above. 2. Which of the following criteria must be satisfied in insurable event? a. a large group of similar items exposed to the same peril, b. the event is independent of the will of the individual, c. definite and measurable losses, d. nonrandom and ordinary losses. 3. An active risk retention is: a. a conscious decision to retain the risk, b. an unconscious decision to retain the risk, c. can be motivated financially, d. all of the above. 4. An example of risk distribution is: a. a partnership, b. an insurance, c. a smoke detector, d. all of the above. 5. The pure risk is a situation which may result in: a. gain, loss or no change, b. loss or no change, c. gain or loss, d. gain or no change. 6. Mark the main types of a hazard: a. physical hazard, b. moral hazard, c. morale hazard d. investing hazard.

7. The physical hazard is: a. personal traits which make people more inclined to dishonesty, b. external conditions that affect the size of the peril, c. individual response of the insured person caused by the awareness of the insurance cover, d. none of the above. 8. Which of the following steps involves each risk management process? a. risk identification, b. risk assessment, c. car accident, d. payment of compensation. 9. An example of risk transfer is: a. a smoke detector, b. a fire