Quiznetik
Risk Management and Insurance | Set 2
1. Which one of the following statement is correct?
A. Group insurance covers a large number of persons in the policy
B. Group insurance is relatively cheaper than individual insurances
C. Both the statements above are correct
D. Both statements above are wrong
Correct : C. Both the statements above are correct
2. Which one of the following statement is correct?
A. A master policy is issued in a group insurance policy.
B. Each member in a group policy pays the premium directly to the insurer
C. Both statements above are correct
D. Both the statements above are wrong
Correct : B. Each member in a group policy pays the premium directly to the insurer
3. Which one of the following is true for a group policy?
A. Copies of the master policy are given to all members by the insurer.
B. The group has to be formed exclusively for the purpose of insurance
C. Entry into the scheme and exit out of it, is at the option of the members.
D. The amount of the cover is determined by the scheme
Correct : D. The amount of the cover is determined by the scheme
4. State which one of the following statement is correct?
A. A trade union can take out a group insurance policy
B. The cover for an employee can be equal to his age multiplied by a fixed number
C. Both the statements above are correct
D. Both the statements above are wrong
Correct : C. Both the statements above are correct
5. One of the fundamental principles of life insurance is ______
A. there is an insurer and policy holder
B. utmost good faith
C. insurable interest
D. Both (b) and (c
Correct : D. Both (b) and (c
6. Facts which need to be disclosed is ____
A. facts of common knowledge
B. facts which lessen the risks
C. facts which every one is supposed to know in general
D. family history
Correct : D. family history
7. Guarantees for employer for the loss out of employee's dishonest is_____________.
A. burglary insurance.
B. fidelity insurance.
C. third party insurance.
D. medical insurance.
Correct : B. fidelity insurance.
8. This policy covers all risks to the ship and its cargo while the ship is at a particular port ___________.
A. Voyage policy.
B. floating policy.
C. time policy.
D. port risk policy.
Correct : D. port risk policy.
9. Fire insurance can be taken in respect of_____.
A. movable property only.
B. immovable property only.
C. both movable and immovable properties.
D. persons only.
Correct : C. both movable and immovable properties.
10. The principle of indemnity is applicable to _______ only.
A. life insurance.
B. personal accident insurance.
C. proximate cause.
D. property insurance.
Correct : D. property insurance.
11. Except life assurance the maximum term of other insurance is _________
A. 12 months.
B. 24 months.
C. 6 months.
D. 36 months.
Correct : A. 12 months.
12. The person whose risk is insured is called __________
A. Insured.
B. Assured.
C. Indemnity.
D. Both 1 and 2.
Correct : D. Both 1 and 2.
13. The person who agrees to compensate the loss arising from the risk is called the _____
A. Insurer.
B. Assurer.
C. Underwriter.
D. All the above
Correct : D. All the above
14. _______ policy in which the limits of the risks are determined by place of particular voyage.
A. Valued.
B. Time.
C. Voyage .
D. Unvalued.
Correct : C. Voyage .
15. _______ policy is which covers the risk during all situations.
A. Floating .
B. Wagering.
C. Valu
D. Mixed
Correct : D. Mixed
16. The term ‘run off’ or ‘fully declared’ refers to ___________
A. Floating policy.
B. Wagering policy.
C. Builders risk policy.
D. Open cover policy.
Correct : A. Floating policy.
17. Wagering policy is otherwise termed as _________
A. Policy proof of interest.
B. Open policy.
C. Builders risk policy.
D. Port risk policies.
Correct : A. Policy proof of interest.
18. Risk insured against death is a contract of ________
A. assurance.
B. agreement.
C. indemnity.
D. caveat emptor.
Correct : A. assurance.
19. The term ‘Assurance’ refers to ________
A. Life Insurance Business.
B. Marine Insurance Business.
C. Fire Insurance Business.
D. Motor Vehicle Business.
Correct : A. Life Insurance Business.
20. The proportion of the risk which the direct insurer holds on his own account refers to ___________
A. Line.
B. Retention.
C. Retrocession.
D. Ceding insurer.
Correct : B. Retention.
21. IRDA refers to_________
A. Insurance Regulatory Development Authority.
B. Indian Regulatory Development Authority.
C. Institute of Regulatory Development Authority.
D. Insurance Regulatory Development Association.
Correct : A. Insurance Regulatory Development Authority.
22. An international code of York Antwerp Rules applied to__________
A. marine losses.
B. losses of fire.
C. losses of crop.
D. losses of human life.
Correct : A. marine losses.
23. Cargo ship caught by fire is an example of __________
A. particular average loss.
B. general average loss.
C. constructive total loss.
D. actual total loss.
Correct : B. general average loss.
24. ___________ policy is granted only in respect of stock of inventories of the insured under fire insurance business.
A. Floating.
B. Declarations.
C. Replacement.
D. Valued.
Correct : B. Declarations.
25. Insurance business is based on ___________
A. Parkinson’s law.
B. Newton’s law.
C. The theory of probability and law of large numbers.
D. Boyle’s law.
Correct : C. The theory of probability and law of large numbers.
26. Duty to minimize loss is incorporated in the policies through _________
A. warranties.
B. Conditions.
C. clauses.
D. declaratives
Correct : B. Conditions.
27. _______ means those risks which involve a situation where there is a possibility of gain.
A. Personal risk.
B. Speculative risk.
C. Other risk.
D. Liability risk.
Correct : B. Speculative risk.
28. A policy protecting a group of persons, usually employees of a firm generally called as ___________
A. Fire insurance policy.
B. Group insurance policy.
C. Marine insurance.
D. Automobile insurance.
Correct : B. Group insurance policy.
29. When was IRD Act passed?
A. 1972.
B. 1999.
C. 1989.
D. 2000.
Correct : B. 1999.
30. Which of the following is the similarity between insurance and gambling?
A. The amount of loss to be paid is known before hand.
B. Promise to pay on the happening of an event.
C. Both the parties win on happening of an event.
D. Both are enforceable at law.
Correct : A. The amount of loss to be paid is known before hand.
31. A human life is an income-generating asset______________
A. true.
B. false.
C. partially true.
D. partially false.
Correct : A. true.
32. Which of the following risks are insurable?
A. Speculative.
B. Economic.
C. Sure to happen.
D. Other risks.
Correct : B. Economic.
33. The premium actually paid by the policy holder depends upon___________
A. the wealth of the person to be insured.
B. the level of risk assessed by the insurer.
C. the tables of rates printed by the insurer.
D. agents report.
Correct : B. the level of risk assessed by the insurer.
34. Which one of the following statement is correct?
A. A life insurance policy is a contract, enforceable in a court of law.
B. A life insurance policy is not required to be stamped.
C. Both the statements are correct.
D. Both the statements are wrong.
Correct : A. A life insurance policy is a contract, enforceable in a court of law.
35. Notification of Alteration in Risk is a condition _____________.
A. precedent to liability.
B. subsequent to liability.
C. precedent to the contract.
D. subsequent to the contract.
Correct : D. subsequent to the contract.
36. As the age increases risk on the life _______.
A. Increases.
B. Decreases.
C. does not change.
D. Moderate.
Correct : A. Increases.
37. If the interest rates in the market are higher, then cost of insurance _________.
A. Increases.
B. moderate.
C. Decreases.
D. no change.
Correct : C. Decreases.
38. One who shares the risk under an insurance policy or policies is known as __________.
A. Assurer.
B. Insurer.
C. Co-insurer.
D. Agent.
Correct : C. Co-insurer.
39. The concept of bancassurance originated in ___________.
A. France.
B. U.S.A.
C. Engla
Correct : A. France.
40. Individuals define risk as____________.
A. deviation from some expected return.
B. a cost of investing.
C. a quantitative measure.
D. “losing money.”
Correct : B. a cost of investing.
41. Committee of reforms in insurance sectors during 1993 headed by ________.
A. R.N. Malhotra.
B. S. Narashiman.
C. Manmohan Singh.
D. P.Chidambaram.
Correct : A. R.N. Malhotra.