CIIG Certificate Practice Questions - CIIG Certificate in Insurance Exam - CIIG Certificate Practice Questions

Question 1

Which of the following is the most accurate definition of pure risk in insurance terms?

A situation that offers the possibility of either a loss or a gain A situation that involves only the possibility of loss or no loss, with no chance of gain A risk that can be completely eliminated through business diversification A risk associated solely with speculative trading in capital markets

Correct Answer:

A situation that involves only the possibility of loss or no loss, with no chance of gain

Question 2

In insurance terminology, what is the distinction between a peril and a hazard?

A peril is the cause of a loss, whereas a hazard is a condition that increases the likelihood or severity of that loss A peril is an insurable event, whereas a hazard is an uninsurable event under any circumstances A peril relates to property damage, whereas a hazard relates to human bodily injury A peril is a subjective risk, whereas a hazard is an objective risk measured by statistics

Correct Answer:

A peril is the cause of a loss, whereas a hazard is a condition that increases the likelihood or severity of that loss

Question 3

A factory owner installs a state-of-the-art automatic sprinkler system. Which risk management technique does this action represent?

Risk avoidance Risk transfer Risk reduction Risk retention

Correct Answer:

Risk reduction

Question 4

Which of the following describes a moral hazard in insurance?

An insurance agent misrepresenting policy terms to a client during a sales pitch An insured showing a lack of care or honesty because they know a loss will be paid by the insurer A physical characteristic of a property that makes a fire more likely to occur The regulatory risk of an insurance company failing to meet its solvency requirements

Correct Answer:

An insured showing a lack of care or honesty because they know a loss will be paid by the insurer

Question 5

Under risk theory, why is a homogeneous group of risks essential for the operation of insurance?

It guarantees that no losses will occur within the group during the policy period It enables the insurer to predict future loss trends accurately using the law of large numbers It eliminates the need for reinsuring any part of the risk portfolio It allows the insurer to charge the exact same premium to every single policyholder in the country

Correct Answer:

It enables the insurer to predict future loss trends accurately using the law of large numbers

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About this Exam

Prepare with the CIIG Certificate Practice Questions - CIIG Certificate in Insurance Exam practice quiz. This question bank includes 100 questions covering insurance, ghana, policy, company, and legal. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CIIG Certificate Practice Questions - CIIG Certificate in Insurance Exam

This practice set contains 100 questions from the matching question bank and focuses on insurance, ghana, policy, company, and legal. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CIIG Certificate Practice Questions - CIIG Certificate in Insurance Exam

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