Arm 401 Exam Practice Perfectly Solved And Graded To Pass!!!

Murray Supply Company has a commercial property policy with a $500,000 building limit and a $50,000 deductible. A tornado passed through the area and damaged one of the company's warehouses. The claims adjuster advised the risk manager that the amount of damage to the warehouse was $20,000. Which one of the following represents Murray Supply Company's risk threshold for a property loss? A. The $20,000 property loss B. The $50,000 property policy deductible C. The $500,000 building limit D. The $500,000 building limit less the $20,000 loss {Ans: B}Which one of the following types of risk analysis uses historical data to assign specific values to consequences and their probabilities to reach a numeric indication of the level of risk? A. Predictive analysis B. Qualitative analysis C. Expert analysis D. Quantitative analysis {Ans: D}One financial risk for an insurer is that the insured will not pay all of the premiums when the premiums are due. This type of risk is called A. Underwriting risk. B. Interest rate risk. C. Credit risk. D. Price risk. {Ans: C}Creative Catering has a 15 year old vehicle that was originally built to prepare and serve sandwiches and drinks at various outdoor functions