WEBCE EXAM QUESTIONS AND ANSWERS LATEST UPDATE

WEBCE EXAM QUESTIONS AND ANSWERS LATEST UPDATE

Rory's parents offered to buy him a new car to take to college, but Rory turned
them down because he was afraid the car would be stolen or damaged if he
parked it on campus. In deciding not to own a car, what risk management
technique did Rory employ?
risk avoidance
Which of the following is most likely to be an insurable risk?
The chance that a fire will destroy a building
Theodore pays an annual premium to the insurance company that covers many of
the risks associated with Theodore's business. What risk management technique
is Theodore using?
risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why?
It involves only the chance of a loss.
Esther, an underwriter for QRS Insurance Company, is not able to provide the
coverage requested in Benny's insurance application. Esther can reject the
application, or she can
Make a counteroffer
When applying for a businessowners insurance policy, Brandy did not mention
that hazardous and illegal activity that goes on in the backroom of her shop
because she realized no insurer that knew about it would insure her business.
What is Brandy's failure to disclose this activity considered?
Concealment
Haze's store has an automatic sprinkler system that will be activated by a fire. In
exchange for the reduced fire insurance premium, she signs a document stating
that the automatic sprinkler system will always be in operating condition. What is
this statement?
A Warranty