Question

To prove someone is negligent in causing a loss, all of the following must exist except

	a duty to act.
	a criminal nature to the act.
	a breach of a duty.
	occurrence of injury or damage.

5 of 10

The financial consequences of a liability loss include all of the following except

	the cost of court settlements.
	the cost of defense.
	the cost of out-of-court settlements.
	the cost of the appraisal.

Question

6 of 10

Ed works as a computer analyst and is injured at work. He will be unable to work for 3 weeks and then will be able to return to his job and function as he had before the accident. This is an example of a

	temporary total disability.
	temporary partial disability.
	permanent partial disability.
	temporary permanent disability.

3 of 10

The two major categories of risk-management techniques are

	risk financing and risk avoidance.
	risk control and risk avoidance.
	risk financing and risk control.
	insurance and retention.

Answer 1

To prove someone is negligent in causing a loss, all of the following must exist except

Ans: Criminal nature of the act

Explanation: To prove negligence in causing loss the plaintiff must prove duty, breach, cause, and harm. The defendant owes a duty towards the plaintiff under the circumstances. The defendant breached a legal duty by behaving or not behaving in a certain manner. Causation means it is the defendant's actions that caused the plaintiff injury. Damages are the plaintiff is injured because of the defendant's actions.

5 of 10

The financial consequences of a liability loss include all of the following except

Ans: the cost of the appraisal.

Explanation: The cost of appraisal are the costs incurred to get an expert to determine the value of a property or the damages incurred to property. It helps to appraise damages to the company’s properties or the company’s output or any other damages caused.

Question

6 of 10

Ed works as a computer analyst and is injured at work. He will be unable to work for 3 weeks and then will be able to return to his job and function as he had before the accident. This is an example of a

Ans: temporary total disability.

Explanation: Temporary total disability does not result in permanent disability or death. It reduces the injured ability to perform regular activities and duties. The employee is given his benefits and entitlements until he can resume his normal work. This is the time an employee is given to recover and resume his normal work.

3 of 10

The two major categories of risk-management techniques are

Ans: risk control and risk avoidance.

Explanation: Risk avoidance and risk reduction are the two ways to manage risk. Risk avoidance deals with eliminating any exposure to risk that can get potential losses. Risk reduction deals with the possibility of reducing the likelihood and severity of a loss.