1. Identification correct statement regarding risk and uncertainty

a risk exits when recognized but not uncertainty

b uncertainty can be measured objectively while risk is expressed in terms of degree of belief

c risk is objective and not dependent upon the individual while uncertainty is subjective

d risk is subjective while uncertainty is objective

2. moral hazard is related to

a dishonesty or character defect with a person

b physical conditions of an item exposed to risk

c carelessness or indifference of a person to loss exposure

d the legal system and regulatory environment that increase the chance of loss

e all are correct

3. fundamental risk

a affect the society as a whole

b are within the control of any individual

c are much related to the person in their cause and effect

d can be dealt with insurance

e none of the above

4.method of handling risk concerning with abandoning an item exposed to risk

a retention

b avoidance

c transfer

d none of the above

5.one of the following is a mechanism of non insurance transfer

a transferring unwanted risks by contract

b helping price risks

c incorporation of a business firm with unlimited liability

d all are correct

e none of the above

6.to use check list for risk identification purposes

A. it should be simple to understand

b it should be clear and unambiguous

c should not exhaust the respondent patience

d all are correct

e none of the above

7. personal accident policy does not provide coverage for death arising due to

a childbirth

b war

c self injury

d all the above