RMIN 4000 TEST 1 BROWN UGA 1.pdf

RMIN 4000 TEST 1 BROWN UGA 1.pdf
Question 1: Exposures
CORRECT ANSWER: things of value (assets) that could be lost
Question 2: Perils
CORRECT ANSWER: things that cause injury or loss
Question 3: risk
CORRECT ANSWER: a calculated possibility of a negative
outcome
Question 4: Frequency
CORRECT ANSWER: the number of losses (such as fire or
theft) that occur within a specified time period. aka the
probability of a loss
Question 5: Severity
CORRECT ANSWER: the dollar amount of a loss for a specific
peril (fire, theft, collision) aka How much does it cost when the
loss does occur? 

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