INSURANCE AND RISK MANAGEMENT REVIEW QUESTIONS

CHAPTER 1. RISK AND RISK MANAGEMENT

1. Risk, objective risk, subjective risk, pure risk, speculative risk (definition and
example)
2. fundamental risk and speculative risk, enterprise risk (definition and example)
3. strategic risk and operational risk (definition and example)
4. 3 types of pure risk
5. Analyze the 3 burdens of risks on society.
6. Analyze five major methods of handling risks
7. risk management and 4 steps in the risk management process (definition, example)
CHAPTER 2. INSURANCE
8. insurance, insurer, the insured, premium (definition, example)
9. 4 basic characteristics of insurance (analyze)
10. 6 ideal requirements of an insurable risk?
11. social insurance (definition, characteristics)
12. 5 main benefits of insurance to society (analyze)
13. 3 main costs of insurance to society
14. Distinguish property insurance, liability insurance and person insurance
15. time Policy, Voyage Policy and Mixed Policy in maritime insurance
16. Analyze 3 standard perils in standard fire insurance policy: fire, lightening,
explosion of boilers or of gas
CHAPTER 3. ANALYSIS OF INSURANCE CONTRACTS
17. insurance contract (definition) and 6 basic parts of an insurance contract
18. declarations (definition) and Clarify declarations in property insurance contract
and life insurance contract
19. differences between named-perils policy and all-risks policy?
20. 3 major types of exclusions?
21. 5 reasons for exclusions?
22. conditions in insurance contract?
23. miscellaneous provisions in insurance contract?
24. deductibles in insurance contract? 3 purposes of deductibles
CHAPTER 4. FUNDAMENTAL LEGAL PRINCIPLES
25. principle of indemnity?
26. principle of insurable interest?
 27. principle of subrogation?
28. principle of utmost good faith?
CHAPTER 5. MARINE INSURANCE
29. reinsurance
30. double insurance
31. co-insurance
32. double insurance and co-insurance
33. the relationship between insurance value and insurance amount?
34. the difference between insurance amount and limitation of liability?
35. marine insurance
36. the needs for marine insurance?
37. 3 types of marine insurance?
38. risks in marine insurance?
39. risks in marine insurance based on the causes
40. risks in marine insurance based on the insurance technique
41. loss (definition). Distinguish actual total loss from constructive total loss
42. Notice of Abandonment (NOA)?
43. Particular Average and insurer’s liability?
44. General Average? Example
45. 6 essential features of General Average
46. The content of General Average?
47. the Amendments of York- Antwerp Rules 2004 in comparison with previous
versions?
48. 6 steps to calculate General Average?
49. marine cargo insurance and the needs for it?
50. ICC 1963 & ICC1982?
51. the insured risks in C clause, ICC1982
52. the insured risks in B clause, ICC1982
53. the insured risks in A clause, ICC1982
54. scope of cover in C clause ICC1982?
55. scope of cover in B clause ICC1982?
56. scope of cover in A clause ICC1982?
57. Transit Clause “from warehouse to warehouse” in marince cargo insurance?
58. Voyage policy and Open cover policy in marine insurance cargo?
59. Insurance value V, insurance amount A, insurance premium I?
60. the subject-matter insured in marine hull insurance?
61. the responsibity of ship owner in a both-to-blame collision?
62. the responsibity of cargo owner in a both-to-blame collision?
63. the liability of marine cargo insurers in a both-to-blame collision?
 64. the liability of marine hull insurers in a both-to-blame collision?
65. P&I insurance? Definition and its coverage.
66. the term “P&I” mean in P&I insurance?
67. the Mutuality principle of P&I insurance?
68. the Coverage of P&I insurance?
69. the history of P&I insurance?
CHAPTER 6. AVIATION INSURANCE
70. What are the types of aviation insurance?
71. What is aircraft hull insurance?
72. What is aircraft liability insurance?

CHAPTER 7. INSURANCE REGULATIONS

73. What are the reasons for insurance regulation?
74. What areas are regulated?
75. What are the reasons for insolvencies of insurers?
76. Analyze the methods of ensuring solvency of insurers
Exercises: 2 types: General average distribution, indemnification for damage of
cargo transported by sea