HELLO FM III STUDENTS

It requires the insurer to provide funds to pay for specified losses in exchange for receiving a premium from the purchaser at the inception of the contract.

• Insurance

• Retention

• Other contractual risk transfers

• Hedging

Actions that primarily influence the severity of losses that do not occur are often.

• Loss Prevention

• Loss Prevention Method

• Loss Reduction Method

• Loss Reduction

What are the (4) Four Methods of Financing Losses?

• Hedging

• Retention

• Retained Losses

• Insurance

• Other contractual risk transfers

What are the (3) three Major Risk Management Methods?

• Internal Risk Reduction

• Loss Control

• Risk Reduction

• Loss Financing

It is commonly involve decisions by firms to invest resources in order to increase business value.

• Loss Financing Activities

• Direct Losses

• Indirect Losses

• Loss Control and Internal Risk Reduction

Which of the following is included in Direct Losses?

• Injury and illness to employees

• Bankruptcy costs

• Damage to Asset

• Liability claims defense costs

It can produce more accurate estimate or forecasts of future cash flows, thus reducing variability of cash thus around the predicted value.

• Investment in Information

• Risk Avoidance

• Diversification

• Internal Risk Reduction

Loss Financing is sometimes called "Risk Financing".

• False

• True

• Maybe

• All of the above

Choose one only!

• Lights on

• Lights off

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