2. Mention four of the restrictions imposed on risks.

4. Calling the insurer the treasurer of the insurer fund is not quite accurate because he is really the owner of the fund.

5. Insurance helps to reduce the number or amount of losses by the system of rating and other means.

6. The primary function of insurance may be said to be spreading financial losses over the insuring company.

7. The final step in the risk management process is monitoring the results of risk management decisions.

8. Viable insurance requires loses to be reasonably unexpected because it is impossible to insure any event, which is expected.

9. Insurance depends upon the “law of large numbers” because small claims are not worth insuring.

10. All risks cannot e insured commercially because the policy documents would be too complicated.

11. The functional classification of insurance means that business is categorised by the subject matter insured.

13. Independent underwriters based at Lloyd’s London.

14. Not authorised to transact the premium for a proposed risk.

15. Individuals employed by Lloyd’s to assess insurance risks.

16. Part of the Lloyd’s insurance company.

17. General average is:

18. An ancient practice seeking to share certain losses fairly.

19. A system of sharing blame for a collision at sea.

20. A policy provision requiring the assured to bear a share of the loss.

21. An ancient practice seeking to share certain losses fairly

22. Underwriting is a term used to describe:

23. A process of determining the premium for a proposed risk.

24. A guarantee that the insurer will not suffer heavy losses.

25. The assessment of risks proposed for insurance.

26. The authorisation of an insurer to transact insurance.

27. The insurance of liability risks in marine insurance:

28. Forms part of each marine insurance policy.

29. Is never found in any marine insurance policy.

30. Is a compulsory requirement by law.

31. Is mostly insured by Protection and Indemnity Clubs.

32. The old “SG” form used in marine insurance:

33. Could be used either for insuring ships or cargo.

34. Was quickly replaced by a more modern form.

35. Was used only for the insurance of ships.

36. Is still the most common form of policy used today.

37. The meaning of a pure risk is:

38. An insurance where the policyholder’s honesty is beyond reproach.

39. A potentiality which offers only the prospect of a loss.

40. A risk which is unlikely to occur.

41. A risk which is insurable.

42. The definition of a speculative risk is:

43. An uncertainty from which profit, loss or status quo might result.

44. Launching a new product.

45. Loss for a relatively small number.

46. A bet on a horse race.

47. If an insurance is contrary to public policy:

48. Insurers will rarely grant it.

49. Both insurer and policyholder are liable to criminal charges.

50. It can be issued but under several conditions.

51. It would be considered immoral by most members of the public.