26. GenCon Builders is using guaranteed cost insurance for workers' compensation, commercial general liability, and auto liability. The rates used to derive the premiums will therefore be based on a. the expected losses for similar types of contractors. Ob. Gencon's actual losses for the period. oc. Gencon's outstanding claims. od. Gencon's past premium expenses. 27. When he asks his broker what the difference is between a guaranteed cost insurance plan and a loss sensitive insurance plan, the controller for Edison Electrical learns that O a. with a loss sensitive plan, the final premium is dependent on the ultimate loss experience during the period a plan is in effect. ob. with a loss sensitive plan, the final premium is based on expected losses for the period the plan will be in effect. oc. with a loss sensitive plan, the premium is based on past years' losses for a comparable period. od with a loss sensitive plan, the final premium is based on the loss experience of a pool of similar contractors during the policy period. 28. When comparing alternative risk finance programs, the risk manager for GCA Contracting will quantify the time value of money by determining the current value of the future income streams. The result is called a O a. payout profile ob. loss reserve profile. oc. present value analysis. od. future value analysis. 29. The risk manager for Gencon Contracting is reviewing the company's risk. He must follow certain steps, in a particular order, to conduct this review. Which of the following lists the steps in the correct order? Ca. implementation, risk identification, risk analysis, designing the risk management strategy, review ob. implementation, risk analysis, risk identification, designing the risk management strategy, review oc. review, risk analysis, risk identification, designing the risk management strategy, implementation od risk identification, risk analysis, designing the risk management strategy, implementation, review 30. Traditionally, risk management focused on managing only "pure," or fortuitous, risks, which are O a. risks of loss, without the possibility of gain. b. investment risks. oc. interest rate risks. Od the results of gambling. 26. GenCon Builders is using guaranteed cost insurance for workers' compensation, commercial general liability, and auto liability. The rates used to derive the premiums will therefore be based on a. the expected losses for similar types of contractors. Ob. Gencon's actual losses for the period. oc. Gencon's outstanding claims. od. Gencon's past premium expenses. 27. When he asks his broker what the difference is between a guaranteed cost insurance plan and a loss sensitive insurance plan, the controller for Edison Electrical learns that O a. with a loss sensitive plan, the final premium is dependent on the ultimate loss experience during the period a plan is in effect. ob. with a loss sensitive plan, the final premium is based on expected losses for the period the plan will be in effect. oc. with a loss sensitive plan, the premium is based on past years' losses for a comparable period. od with a loss sensitive plan, the final premium is based on the loss experience of a pool of similar contractors during the policy period. 28. When comparing alternative risk finance programs, the risk manager for GCA Contracting will quantify the time value of money by determining the current value of the future income streams. The result is called a O a. payout profile ob. loss reserve profile. oc. present value analysis. od. future value analysis. 29. The risk manager for Gencon Contracting is reviewing the company's risk. He must follow certain steps, in a particular order, to conduct this review. Which of the following lists the steps in the correct order? Ca. implementation, risk identification, risk analysis, designing the risk management strategy, review ob. implementation, risk analysis, risk identification, designing the risk management strategy, review oc. review, risk analysis, risk identification, designing the risk management strategy, implementation od risk identification, risk analysis, designing the risk management strategy, implementation, review 30. Traditionally, risk management focused on managing only "pure," or fortuitous, risks, which are O a. risks of loss, without the possibility of gain. b. investment risks. oc. interest rate risks. Od the results of gambling