2025/2026 WEBCE EXAM 1 & STUDY GUIDE QUESTIONS AND ANSWERS
Rory's parents offered to buy him a new car to take to college, but Rory turned
them down because he was afraid the car would be stolen or damaged if he
parked it on campus. In deciding not to own a car, what risk management
technique did Rory employ?
risk avoidance
Which of the following is most likely to be an insurable risk?
The chance that a fire will destroy a building
Theodore pays an annual premium to the insurance company that covers many
of the risks associated with Theodore's business. What risk management
technique is Theodore using?
risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why?
It involves only the chance of a loss.
Esther, an underwriter for QRS Insurance Company, is not able to provide the
coverage requested in Benny's insurance application. Esther can reject the
application, or she can
Make a counteroffer
When applying for a businessowners insurance policy, Brandy did not mention
that hazardous and illegal activity that goes on in the backroom of her shop