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1/20 W01/March 2017 Award in General Insurance
1
Chapter

Self-test questions
1. What is meant when we say that insurance is a ‘risk transfer’ mechanism?

2. What are the main stages in the risk management process?
3. What are the two main elements involved in the measurement of risk?
4. What is the definition of a peril?
5. What is the definition of a hazard?
6. What is the difference between physical hazard and moral hazard?
7. How does the ‘pool’ operate in insurance?

8. What are the characteristics of co-insurance?
9. Which of the following are insurable risks?
Speculative, pure, financial, non-financial, fundamental and particular.
10. List the elements that must be present for a risk to be insurable.

You will find the answers at the back of the book Reference copy for CII Face to Face Training