Risk Management (Nelson Driver Exam 1) Correct Questions And Answers!

Peril {Ans: cause of loss}speculative risk {Ans: putting money in 401k, casino}Physical Hazard {Ans: burned out light bulb over darkened stairwell, not replacing worn out tires on automobile}Completed operations {Ans: liability for contractors}EPA Regulations {Ans: change on a dialy basis - makes it difficult to get a handle on it}Workers comp {Ans: example of strict liability}vicarious liability {Ans: you can become responsible for actions of another person (mainly employees)}Professional Liability {Ans: Claims arise anytime someone professes to have or has a level of experience greater than the average person}subjective risk {Ans: synonymous with level of risk tolerance}types of peril {Ans: fire, lightning, wind, hail, flood, earthquake, volcano}Directors and Officers Liability {Ans: director and/or officer of organization renders decision independently or directly that has negative of effect on stake holder}Open Peril Policy (all risk) {Ans: you are covered and protected against losses caused by any peril unless specifically excluded}Morale Hazard {Ans: I don't care attitude (employees are only there to get paid and will do just enough and nothing else)}Doctrine of proximate cause {Ans: states that first insured peril in an unbroken chain of events that leads