AIDA 182 Latest Update -

AIDA 182 Latest Update - with 200+ Questions and 100% Verified Correct Answers Guaranteed A+ At First Attempt Verified By Professor

"And" connecting events in rectangles C, D, and E to the event in rectangle A indicates

what? - CORRECT ANSWER: Preventing the event in rectangle C, D, or E from

occurring will prevent the event in rectangle A from occurring.

"And" gate event probabilities include what? - CORRECT ANSWER: Multiplying the probability of each event occurring to get the probably of passing through the "and" gate.

"means to limit the potential impact from a loss at a single location" is what control? -

CORRECT ANSWER: Separation.

A company's fleet of cars is worrying the managers liquidity of the company and fuel prices having an adverse effect is which type of risk quadrant? - CORRECT ANSWER: Financial risk.

A computer programmed to perform 100,000 times the probability distribution of

profitability of acquiring a new company is what? - CORRECT ANSWER: Simulation

analysis.

A diagram that graphically and sequentially depicts the activities of a particular

organization or process is what? - CORRECT ANSWER: A flowchart.

A failure mode with an effect on the same level that is being analyzed produces what? -

CORRECT ANSWER: A local effect.

A main characteristic of a key risk indicator is? - CORRECT ANSWER: They are based on quantifiable information. 1 / 3

A property-casualty insurer has what two operations? - CORRECT ANSWER: Insurance operations and investment operations.

A rate should be what? - CORRECT ANSWER: Stable (not constant over the long term), result in premiums that cover all losses and expenses and leave some left for profit and contingencies, be reflective of the risk exposure, and be responsive.

Stable rates are desirable because changing rates is expensive.

A strong correlation exists between umbrella policy and replacement cost policy purchases. It would be incorrect to conclude demand increases for umbrella policies

create demand increases for replacement policies, why? - CORRECT ANSWER:

Because correlation does not measure causality.

A systemic procedure that uses the results of other analysis techniques to identify the

predominant determinants of an accident is called? - CORRECT ANSWER: Root cause

analysis.

A training seminar in an effort to educate employees on safe practices is an example of

what loss control? - CORRECT ANSWER: Loss prevention.

A worker is killed because another worker removes a safety device from the machine and another removes a warning sticker. What is the root cause of this? - CORRECT

ANSWER: Inadequate training.

An analysis that begins with causes and then gets to consequences is what? -

CORRECT ANSWER: Failure mode and effects analysis.

An earned exposure unit is what? - CORRECT ANSWER: An exposure unit that has

provided a full year of coverage, by the insurer.

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An employee embezzling funds from a company for not feeling adequately paid is what

risk? - CORRECT ANSWER: Both a hazard and an operational risk.

An enterprise risk management approach is categorizing risks into quadrants. What are

hazard risks? - CORRECT ANSWER: Normally managed by risk management

professionals.

An influence diagram does what? - CORRECT ANSWER: Presents an overview of the

decision making process.

As a key step in the process of developing insurance rates, actuaries adjust the premium and loss data that they have collected from past years. Which one of the following statements concerning this adjustment process is true? - CORRECT ANSWER: Loss development factors reflect growth in incurred reported losses and in IBNR.

Avoidance is what? - CORRECT ANSWER: The most effective way of managing any

loss exposure.

Business process management focuses on what? - CORRECT ANSWER: Customer

satisfaction.

Cat model component that includes building construction, occupancy, and building code

is what? - CORRECT ANSWER: Engineering component.

Covariance is different from correlation in that correlation represents how strongly variables are related. Covariance is the measure of correlation. Therefore, covariance is

what? - CORRECT ANSWER: The measure of the extent to which variables move

together or independently.

Customer satisfaction is a strategic objective, what is a critical success factor to for this

objective? - CORRECT ANSWER: High customer retention.

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