Why is effective risk management important to an insurer?

• A.It always reduces costs.
• B.It increases premium income.
• C.It increases the insurer's capacity.
• D.It helps to reduce a company's loss exposure.

Comment: *

Name: *

Email: *

Verification: *

If an insurer invokes the cancellation clause to cancel a policy mid-year due to a change in the risk, how much of the premium, if anything, is normally returned to the policyholder?

• A.A pro rata amount.
• B.The full year's premium.
• C.The full year's premium less a fixed nominal charge.
• D.None of the premium.

Comment: *

Name: *

Email: *

Verification: *

A policyholder achieves peace of mind when insuring his car by

• A.eliminating the risk of loss.
• B.reducing the chance of a loss occurring.
• C.preventing the chance of a loss occurring.
• D.transferring the risk to the insurer.

Comment: *

Name: *

Email: *

Verification: *