GENERAL KNOWLEDGE

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GK

INSURANCE AWARENESS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A type of insurance often used for high frequency low severity risks where risk is not transferred to an insurance company but retained and accounted for internally is known as ____
A
Hull Insurance
B
Self Insurance
C
Group Insurance
D
Hospital Insurance
Explanation: 

Detailed explanation-1: -The frequency-severity method is an actuarial method for determining the expected number of claims an insurer will receive during a time period and the average claim’s cost. Frequency refers to the number of claims an insurer anticipates will occur over a given period of time.

Detailed explanation-2: -According to the high-frequency–low-severity safety risks identified from the supervision data, project managers and supervisors can develop future management and supervision plans based on objective evidence, thus avoiding personal subjectivity.

Detailed explanation-3: -In the lower-right corner of the matrix in Table 4.4 “The Traditional Risk Management Matrix (for One Risk)", at the intersection of high frequency and high severity, we find avoidance. Managers seek to avoid any situation falling in this category if possible.

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