Test, Chapters 1–6, Risk and Insurance, BU 374
Name______________________________
1. Risk is defined as:
a. The ratio of loss to gain
b. The chance of expected loss or gain
c. Exposure of loss related to gain
d. Uncertainty concerning the occurrence of a loss
2. If a house is destroyed by a tornado, the peril is:
a. Inadequate defense
b. The tornado
c. Weather reporting
d. Protection inability
3. The four major types of hazards are:
a. Moral, physical, legal, marginal
b. Moral, physical, legal, attitudinal
c. Marginal, physical, legal, dynamic
