1. ________ is the total premium that a policy holder pays

A. Gross premium

B. Avg. premium

C. Partial premium

D. All of these

Correct : A. Gross premium

2. ________ means a premium which remains unchanged through out the life of a policy.

A. Avg. premium

B. Gross premium

C. Total premium

D. Level premium

Correct : D. Level premium

3. The time frame for which an insurance policy provides coverage is known as ________

A. Policy term

B. Policy loan

C. Policy mode

D. None

Correct : A. Policy term

4. An exceptionally large risk is known as ________

A. Great risk

B. Jumbo risk

C. Giant risk

D. None

Correct : B. Jumbo risk

5. A person who gains or benefits as per a contract is known as ______

A. Beneficiary

B. Annuitant

C. Assurer

D. None

Correct : A. Beneficiary

6. Intimation of Death is the information of death to the ________

A. Beneficiary

B. Insurer

C. Both (a) and (b)

D. None

Correct : B. Insurer

7. Gross premium means Net premium plus ________

A. Profit

B. Loss

C. Expense

D. Expense loading

Correct : D. Expense loading

8. ________ is a form of health insurance against loss by accidental bodily injury

A. Property insurance

B. Marine insurance

C. Personal insurance

D. Accident insurance

Correct : D. Accident insurance

9. Taylor Tobacco Company is concerned that the company may be held liable in a court of law and forced to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses is known as

A. moral hazard.

B. particular risk

C. speculative risk

D. legal hazard.

Correct : D. legal hazard.

10. All of the following are social costs associated with insurance EXCEPT

A. the expense of doing business.

B. fraudulent claims.

C. inflated claims.

D. increased cost of capital.

Correct : D. increased cost of capital.

11. Bronson Company manufactures tools that it sells to wholesalers. Bronson is concerned that it may be unable to collect money the company is owed by the wholesalers. To address this risk, Bronson Company could purchase

A. a fidelity bond.

B. general liability insurance.

C. allied lines insurance.

D. credit insurance.

Correct : D. credit insurance.

12. All of the following are financial risks which may be faced by business organizations EXCEPT

A. interest rate risk.

B. commodity price risk.

C. product liability risk.

D. currency exchange rate risk.

Correct : C. product liability risk.

13. ………….of India offers a range of credit risk insurance covers to exporters against loss in export of goods and services.

A. RBI

B. LIC

C. ECGC

D. NAIS

Correct : C. ECGC

14. NAIS stands for

A. National Agricultural Insurance Scheme

B. National Agro Insurance Scheme

C. National Accident Insurance Scheme

D. National Authority for Insurance Schemes.

Correct : A. National Agricultural Insurance Scheme

15. In India ……….controls and regulate the rates, advantages , terms and conditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation.

A. IRDA

B. TAC

C. GIC

D. LIC

Correct : B. TAC

16. TAC stands for

A. Trade Advisory Corporation

B. Trade Advisory Committee

C. Tariff Advisory Corporation

D. Tariff Advisory Committee

Correct : D. Tariff Advisory Committee

17. ……..is pricing of insurance products driven by market forces

A. tariffing

B. de-tariffing

C. equilibrium pricing

D. fixed pricing

Correct : B. de-tariffing

18. ………….is an amount in excess of the value of insurers assets over the amount of liabilities.This amount is prescribed by IRDA.

A. profit

B. goodwill

C. margin

D. solvency margin.

Correct : D. solvency margin.

19. …………are those where a part of the premium is charged for the risk cover and the rest is invested in selected mutual funds as per the choice of the investor.

A. mutual fund insurance

B. unit-linked insurance

C. double insurance

D. partial insurance

Correct : B. unit-linked insurance

Quiznetik

Insurance Management | Set 3

1. ________ is the total premium that a policy holder pays

2. ________ means a premium which remains unchanged through out the life of a policy.

3. The time frame for which an insurance policy provides coverage is known as ________

4. An exceptionally large risk is known as ________

5. A person who gains or benefits as per a contract is known as ______

6. Intimation of Death is the information of death to the ________

7. Gross premium means Net premium plus ________

8. ________ is a form of health insurance against loss by accidental bodily injury

9. Taylor Tobacco Company is concerned that the company may be held liable in a court of law and forced to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses is known as

10. All of the following are social costs associated with insurance EXCEPT

11. Bronson Company manufactures tools that it sells to wholesalers. Bronson is concerned that it may be unable to collect money the company is owed by the wholesalers. To address this risk, Bronson Company could purchase

12. All of the following are financial risks which may be faced by business organizations EXCEPT

13. ………….of India offers a range of credit risk insurance covers to exporters against loss in export of goods and services.

14. NAIS stands for

15. In India ……….controls and regulate the rates, advantages , terms and conditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation.

16. TAC stands for

17. ……..is pricing of insurance products driven by market forces

18. ………….is an amount in excess of the value of insurers assets over the amount of liabilities.This amount is prescribed by IRDA.

19. …………are those where a part of the premium is charged for the risk cover and the rest is invested in selected mutual funds as per the choice of the investor.