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Sports Risk Management and Insurance

Description: This quiz covers the topic of Sports Risk Management and Insurance, including concepts such as risk assessment, liability, and insurance policies.
Number of Questions: 15
Created by:
Tags: sports management risk management insurance
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What is the primary purpose of sports risk management?

  1. To minimize the likelihood of injuries and accidents

  2. To ensure that athletes are adequately compensated for injuries

  3. To protect sports organizations from financial losses

  4. To promote fair play and ethical conduct in sports


Correct Option: A
Explanation:

The primary goal of sports risk management is to identify and mitigate potential hazards and risks that may lead to injuries, accidents, or other adverse outcomes during sports activities.

Which of the following is NOT a common type of sports insurance policy?

  1. General liability insurance

  2. Accident insurance

  3. Property insurance

  4. Workers' compensation insurance


Correct Option: C
Explanation:

Property insurance is typically not a type of sports insurance policy, as it covers damage to property rather than injuries or liabilities related to sports activities.

What is the main purpose of a waiver of liability form in sports?

  1. To release the sports organization from legal responsibility for injuries

  2. To ensure that athletes are aware of the risks involved in the sport

  3. To provide financial compensation to athletes in case of injuries

  4. To promote fair play and ethical conduct in sports


Correct Option: A
Explanation:

A waiver of liability form is a legal document that athletes sign to acknowledge the risks involved in a sport and to release the sports organization from any legal liability for injuries that may occur during participation.

What is the term used to describe the transfer of risk from one party to another through an insurance policy?

  1. Subrogation

  2. Indemnification

  3. Mitigation

  4. Assumption of risk


Correct Option: B
Explanation:

Indemnification refers to the transfer of risk from one party (the insured) to another party (the insurer) through an insurance policy, where the insurer agrees to compensate the insured for covered losses or damages.

Which of the following is NOT a common method of risk management in sports?

  1. Risk assessment

  2. Risk avoidance

  3. Risk transfer

  4. Risk retention


Correct Option: B
Explanation:

Risk avoidance is not a common method of risk management in sports, as it involves completely eliminating the activity or hazard that poses the risk, which is often impractical or impossible in sports.

What is the term used to describe the process of identifying, evaluating, and prioritizing risks in sports?

  1. Risk assessment

  2. Risk management

  3. Risk transfer

  4. Risk retention


Correct Option: A
Explanation:

Risk assessment is the process of identifying, evaluating, and prioritizing risks in sports, which involves analyzing potential hazards, estimating the likelihood and severity of their occurrence, and determining the appropriate strategies to manage those risks.

Which of the following is NOT a common type of liability associated with sports activities?

  1. Negligence

  2. Assault and battery

  3. Breach of contract

  4. Product liability


Correct Option: C
Explanation:

Breach of contract is not a common type of liability associated with sports activities, as it typically involves a failure to fulfill a contractual obligation, rather than causing harm or injury to others.

What is the term used to describe the process of reducing the likelihood or severity of a risk in sports?

  1. Risk assessment

  2. Risk management

  3. Risk mitigation

  4. Risk transfer


Correct Option: C
Explanation:

Risk mitigation is the process of reducing the likelihood or severity of a risk in sports, which involves implementing strategies and measures to minimize the potential negative consequences of a risk.

Which of the following is NOT a common type of insurance coverage included in a sports insurance policy?

  1. Medical expenses coverage

  2. Disability income coverage

  3. Property damage coverage

  4. Legal liability coverage


Correct Option: C
Explanation:

Property damage coverage is not a common type of insurance coverage included in a sports insurance policy, as it typically covers damage to property rather than injuries or liabilities related to sports activities.

What is the term used to describe the process of transferring risk from one party to another through an insurance policy?

  1. Subrogation

  2. Indemnification

  3. Mitigation

  4. Assumption of risk


Correct Option: B
Explanation:

Indemnification refers to the transfer of risk from one party (the insured) to another party (the insurer) through an insurance policy, where the insurer agrees to compensate the insured for covered losses or damages.

Which of the following is NOT a common type of risk associated with sports activities?

  1. Injury risk

  2. Equipment failure risk

  3. Weather-related risk

  4. Financial risk


Correct Option: D
Explanation:

Financial risk is not a common type of risk associated with sports activities, as it typically involves the potential for financial losses or expenses, rather than causing harm or injury to others.

What is the term used to describe the process of accepting and retaining the risk of a loss or injury in sports?

  1. Risk assessment

  2. Risk management

  3. Risk transfer

  4. Risk retention


Correct Option: D
Explanation:

Risk retention is the process of accepting and retaining the risk of a loss or injury in sports, which involves choosing not to transfer the risk to another party through insurance or other risk management strategies.

Which of the following is NOT a common type of insurance coverage included in a sports insurance policy?

  1. Medical expenses coverage

  2. Disability income coverage

  3. Property damage coverage

  4. Legal liability coverage


Correct Option: C
Explanation:

Property damage coverage is not a common type of insurance coverage included in a sports insurance policy, as it typically covers damage to property rather than injuries or liabilities related to sports activities.

What is the term used to describe the process of transferring risk from one party to another through an insurance policy?

  1. Subrogation

  2. Indemnification

  3. Mitigation

  4. Assumption of risk


Correct Option: B
Explanation:

Indemnification refers to the transfer of risk from one party (the insured) to another party (the insurer) through an insurance policy, where the insurer agrees to compensate the insured for covered losses or damages.

Which of the following is NOT a common type of risk associated with sports activities?

  1. Injury risk

  2. Equipment failure risk

  3. Weather-related risk

  4. Financial risk


Correct Option: D
Explanation:

Financial risk is not a common type of risk associated with sports activities, as it typically involves the potential for financial losses or expenses, rather than causing harm or injury to others.

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