Quiznetik

Risk Management and Insurance | Set 1

1. ….. is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hope for.

Correct : C. Risk

2. Relative variation of actual loss from expected loss is called………

Correct : B. Objective risk

3. Risk is measurable……..

Correct : C. Uncertainty

4. …………. Refers to a situation where outcome is not certain

Correct : A. Uncertainty

5. If any risk is concerned with financial loss, it is termed as………..

Correct : C. Financial risk

6. ………… another name of fundamental risk

Correct : C. Group risk

7. Pure risk situation are those where there is a possibility of………….

Correct : A. Loss or no loss

8. Speculative risk is a situation in which…………………… is possible

Correct : C. Either a profit or loss

9. Changes is technology is a example for …………

Correct : D. Dynamic risk

10. In static risk.............

Correct : B. Losses can be predicted

11. Risk which can be measured using numerical scale are known as

Correct : A. Quantifiable risk

12. ………………is an example for personal risk

Correct : C. Risk of premature death

13. Property damaged because of earthquake is…………risk

Correct : C. Property risk

14. Spreading of risk otherwise termed as……….

Correct : A. Shifting of risk

15. Insurance is a risk management technique involving…

Correct : D. Risk transfer

16. An escape from disability or death in a plain crash by refusing to fly is called…

Correct : B. Risk avoidance

17. ………… is the process of reducing frequencies and severely of losses.

Correct : B. Loss Control

18. Willingness to retain whole or part of a given risk is called…………..

Correct : A. Risk retention

19. Annual maintenance contract for computers is …………

Correct : D. Transfer of risk by contract

20. Which of the following is a method of risk identification.

Correct : C. Checklist method

21. Risk evaluation breaks down into two parts. They are:

Correct : A. Probability of loss occurring and its severity

22. …………….. is planned retention by which the part or full of the exposure arising a risk factor is retained by the firm

Correct : B. Self insurance

23. IRDA Act passed in the year…………..

Correct : B. 1999

24. A policy for protecting a group of employees in a firm is called………..

Correct : C. Group insurance

25. Committee constituted to reform insurance sector constituted in the 1993 was headed by

Correct : A. R.N. Malhothra

26. When the amount for which a subject matter is insured is more that its actual value. It is called…..

Correct : B. Over insurance

27. Expansion of IRDA is…………….

Correct : C. Insurance regulatory and development authority

28. First private life insurance company was registered in India in……….

Correct : B. 2000

29. When did Government of India nationalized life insurance business.

Correct : A. 1956

30. …………….. is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy

Correct : C. Average policy

31. ………… Clause generally inserted in all general insurance contract to discourage under insurance

Correct : D. Average clause

32. Who pays premium under social security group insurance?

Correct : C. LIC

33. …………..is concerned with the conversion of a firms asset and earning power against risk of accidental loss.

Correct : D. Risk identification

34. If the market interest rate is higher, the cost of insurance…

Correct : C. Decreases

35. As age increases risk on the life………..

Correct : A. Increases

36. Premium of a policy is calculated on the basis of……

Correct : C. Risk associated with the policy

37. “Human life is an income generating asset”. The statement is……

Correct : A. True

38. Maximum period of a policy in case of insurance other than life insurance is…..

Correct : A. 12 months

39. The business of insurance is related to protection of…………

Correct : B. Economic value of asset

40. Reinsurance also termed as…..

Correct : C. Insurance of insurance

41. The danger of loss from the unforeseen circumstances in future refers to _____

Correct : A. Risk

42. _________ is concerned with the conversion of a firm’s asset and earning power against risks of accidental loss.

Correct : B. Risk management.

43. ________ involved those losses that occur even if there were no changes in the economic environment.

Correct : B. Static risk.

44. Risks are not suited to treatment by insurance refers to ____________

Correct : C. Dynamic risk.

45. Fundamental risk is also termed as _________

Correct : C. Group risk.

46. Unemployment, war, inflation, earthquakes etc., are the examples of ________

Correct : D. Fundamental risk.

47. Any risk involved a situation where there is a possibility of gain refers to ________

Correct : D. Speculative risk.

48. Direct or Consequential losses refer to _________

Correct : C. Property risk.

49. Spreading of risk otherwise termed as _________

Correct : D. Spreading of risk.

50. The principle of prevention is better than cure refers to __________

Correct : A. Avoiding of risk.

51. Insurance is a risk management technique involving____________

Correct : D. risk transfer.

52. Risk management follows a systematic process which involves _______ steps.

Correct : D. five.

53. Organizations are mainly concerned with managing

Correct : A. pure risks.

54. The first step in risk management process is

Correct : B. risk identification.

55. Which of the following steps in the risk management process helps in determining sum insured under policies?

Correct : D. risk evaluation.

56. Main emphasis of risk management is on

Correct : B. reduction of cost of handling risk.

57. When the subject is partially lost by a peril insured against, it is called ___________

Correct : D. Particular average loss.

58. The Concept of Insurance is ___________

Correct : A. to share losses by many

59. Insurance covers the risk of most certain event _____

Correct : D. death of a person

60. Insurance cover _______

Correct : C. reduces the impact of loss

61. The person whose risk is insured a is called ____________

Correct : D. Both a and b

62. The person who agrees to compensate the loss arisingfrom the risk is called the ______

Correct : D. all the above

63. Risk insured against death is a contract of _________

Correct : A. assurance

64. ________ is a document which provides evidence of the contract of insurance.

Correct : B. Policy form

65. The proportion of the risk which the direct insurer holds on his own account refers to _______

Correct : B. Retention

66. A Re-insurance of re-insurance refers to _____

Correct : C. Retrocession

67. Reinsurance also termed as ______

Correct : A. insurance of insurance

68. When the same risk and subject matter is insured with more than one insurer is called as _______

Correct : A. Double Insurance

69. When the amount for which a subject matter is insured is more than its actual value it is called _____

Correct : B. Over Insurance

70. The business of insurance is related to protection of ________

Correct : C. economic value of assets

71. Who are the beneficiaries of Insurance?

Correct : D. All of these

72. In insurance contracts, the insurance company is also known as ________

Correct : C. Insurer

73. For introduction of a group scheme, we need a ______

Correct : C. Homogeneous group

74. When choosing group life insurance, most groups buy _______

Correct : B. one year renewable group term assurance

75. On the death of the bread-earner, two losses occur in the family-one is loss of human life and the other _____

Correct : D. Earning power of family

76. Consideration on the part of the life insured in respect of a life insurance contract is _______

Correct : B. the insured promise to pay the premium under the policy

77. The policy holder’s duty to disclose material facts lies at the time of ______

Correct : D. all of the above

78. Master policy is issued for _______

Correct : D. group insurance schemes

79. Who pays premium under social security group insurance scheme?

Correct : C. 50% by a social security fund maintained by LIC of India

80. Subrogation means ______

Correct : D. transfer of rights of an insured to another person

81. What is full form of FPA in the context of marine underwriting?

Correct : C. Free Port Association

82. Premium fixed by insurance company must be sufficient to _____

Correct : C. both (a) and (b)

83. Broker’s Association of India was granted recognition by IRDA on _________.

Correct : A. Dec 11, 2001.

84. Foreign equity participation is allowed in insurance sector up to a limit of ____ percent.

Correct : D. 26 .

85. Moral hazard may be suspected in cases where _____

Correct : C. in the both the cases

86. Which one of the following statements is correct?

Correct : C. Both (a) an (b) statements are correct

87. Which one of the following statements is correct?

Correct : D. Both (a) and (b) statements are wrong

88. Which one of the following statements is correct?

Correct : C. Both (a) an (b) statements are correct

89. Financial underwriting is done to evaluate ____

Correct : B. the possibility of moral hazard

90. The net premium will be ______

Correct : A. less than the risk premium

91. When interest rates fall, the tabular premium rates are likely to _______

Correct : A. increase

92. The reason for charging level premium is _______

Correct : D. all the above reasons

93. What is meant by a claim under an insurance policy?

Correct : D. All the three above

94. Which one of the following statement is correct?

Correct : C. Both (a) and (b) statements are correct

95. Which one of the following statement is correct?

Correct : B. Maturity proceeds are paid to the heirs, if the policy holders dies earlier

96. Which one of the following statement is correct?

Correct : B. Claim can be paid even without the original policy, if it is lost

97. Which one of the following statement is correct?

Correct : D. Both (a) and (b) statements are wrong

98. Which one of the following statement is correct?

Correct : D. Both (a) and (b) statements are wrong

99. Which one of the following statement is correct?

Correct : B. When a policy lapses, some benefits are protected

100. Which one of the following statement is correct?

Correct : A. In group insurance, a single policy is issued covering many persons