Part I: True or False: (2.5 marks, 0.5 each) (LO's A1, A2) 1. Insurance is a risk treatment method that is best used for losses that rarely happen, and of which the severity is high (I/F) 2. An insurance contact is unilateral, which means that the values exchanged between the insured and insurer are not equal. (T/F) 3. During an insurance soft market condition, a Company's Risk Manager would prefer to obtain more insurance coverages and renegotiate existing terms. (T/F) 4. In property insurance, insurable interest legally exist at the inception of the policy. (T/F) 5. Using retention as a risk treatment method is suitable if losses are predictable and have a low impact CT/F)