Page 21 - CFPA-SCR-CII-W01-Corrigé des Quizz

CFPA - SCR - CII - Module W01

Quizz n°4 - 19/07/2019

1. The main components of risk are:

A. certainty, level of risk and peril and hazard.
B. certainty, type of risk and peril and hazard.
C. uncertainty, level of risk and peril and hazard.
D. uncertainty, type of risk and peril and hazard.

2. In relation to insurance, a peril is:

A. an event which may give rise to a loss.
B. the chance of an event which may give rise to a loss.
C. an internal feature that increases the chance of an event which may give rise to a loss.
D. an external feature that increases the chance of an event which may give rise to a loss.

3. In terms of frequency and severity, the risk of motor accidental damage losses occurring during a
winter freeze are classified as:

A. high frequency, low severity.
B. high frequency, high severity.
C. low frequency, low severity.
D. low frequency, high severity.

4. Charlotte is choosing a European holiday and is considering a city break, a beach holiday, a cruise or
a scuba diving course. In respect of travel insurance cover, which is usually the highest risk?

A. The beach holiday.
B. The city break.
C. The cruise.
D. The scuba diving course.

5. How does the provision of insurance help the cash flow of a business?

A. It lessens the need for the business to keep cash reserves.
B. It prevents losses which could interrupt the business from operating.
C. It provides for the payment of cash if the business makes a trading loss.
D. It underwrites the debts owed by the business.

6. Policies that refer to cover on a comprehensive or third party basis are most commonly examples of
which class of insurance?