Insurance Management Set 2

Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance)

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This set of Insurance Management Multiple Choice Questions & Answers (MCQs) focuses on Insurance Management Set 2

Q1 | Committee of reforms in insurance sectors during 1993 headed by ________.
  • R.N. Malhotra
  • S. Narashiman
  • Manmohan Singh
  • P.Chidambaram
Answer: R.N. Malhotra
Q2 | Insurance business is based on __________.
  • Newtons Law
  • Boyles Law
  • The Theory of Probability and Law of large numbers
  • Parkinsons Law
Answer: The Theory of Probability and Law of large numbers
Q3 | Gross Premium means Net Premium plus___________
  • Margin
  • Profit
  • Expense Loading
  • Loss
Answer: Expense Loading
Q4 | _____________ is pricing of insurance products driven by market forces
  • De-tariffing
  • Fixed Pricing
  • Tariffing
  • Penetration Pricing____
Answer: De-tariffing
Q5 | ____________ is the total premium that a policy holder pays to insurance company
  • Net Premium
  • Gross Premium
  • Partial Premium
  • Level Premium
Answer: Gross Premium
Q6 | Insurance helps to:
  • Prevent adverse situations from occurring
  • Reduce the financial consequences of adverse situations
  • Negate all consequences of adverse situations
  • Make assets continuously productive
Answer: Reduce the financial consequences of adverse situations
Q7 | An actuary is expected to:
  • Make an exact forecast of the future liabilities of policies
  • Make a reasonable forecast of the future liabilities of policies
  • Calculate the premium required to cover a risk on a long-term basis
  • Find the probability of an insured event to happen in non-life policies
Answer: Make a reasonable forecast of the future liabilities of policies
Q8 | The principle of _____________ ensures that an insured does not profit byinsuring with multiple insurers
  • Subrogation
  • Contribution
  • Co-insurance
  • Indemnity
Answer: Contribution
Q9 | The principle of average applies when the value is _____________ in theproposal
  • Understated
  • Overstated
  • Not ascertainable
  • Negligible
Answer: Understated
Q10 | Fidelity Guarantee Policies cover losses due to fraud by ____________
  • Employees
  • Customers
  • Borrowers
  • Suppliers
Answer: Employees
Q11 | CTL as used in insurance
  • Contributory Total Loss
  • Constructive Total Loss
  • Construction Totally Lost
  • Contractors’ Total Loss
Answer: Constructive Total Loss
Q12 | GA as used in insurance
  • General Assurance
  • General Average
  • General Adjustment
  • Guaranteed Assurance
Answer: General Average
Q13 | Which of the following terms matches closest with ‘Family Floater’?
  • Health insurance
  • Property insurance
  • Accidental injury
  • Consequential loss
Answer: Health insurance
Q14 | In cases where a Life Insurance Agent collects the premium from thepolicyholder and remits it to the insurer’s office, he is acting as an agent of _____
  • IRDA
  • the Insurance Company
  • the Policyholder
  • the broker
Answer: the Insurance Company
Q15 | A policy where the policyholder makes a one-time payment of premium, isknown as a ______________:
  • Money-back policy
  • Single premium policy
  • Salary Savings Scheme policy
  • Half-yearly policy
Answer: Single premium policy
Q16 | i. State which of the statements given below is correct .
  • An organisation can exist only with employees
  • An organisation can exist only with different sections
  • An organisation can exist only with its own office building
  • An organisation can exist without a purpose
Answer: An organisation can exist only with employees
Q17 | ……… may be described as a social device to reduce or eliminate risk of lossto life and property.
  • investment
  • saving
  • insurance
  • loan
Answer: insurance
Q18 | State which of the statements given below is correct
  • People generally feel that life related risks are imminent
  • Religious beliefs interfere with the purchase of life insurance
  • People are always keen to buy insurance
  • Life insurance cannot be denied to anyone at any time
Answer: Religious beliefs interfere with the purchase of life insurance
Q19 | Compared to the premium for a Whole Life plan, the premium for anEndowment plan will be ____________ for the same age
  • more
  • less
  • the same
  • double
Answer: more
Q20 | Select the expanded form of SA as commonly used in life insurance
  • Sum Assured
  • Surrender of Assurance
  • Supplementary Assurance
  • Stamp Act
Answer: Sum Assured
Q21 | Select the expanded form of OR as commonly used in life insurance
  • Oral Rehydration
  • Once Renewed
  • Ordinary Rates
  • Ordinary Renewal
Answer: Ordinary Rates
Q22 | Select the expanded form of SV as commonly used in life insurance
  • Summary Valuation
  • Selected Value
  • Surrender Value
  • Stamp Value
Answer: Surrender Value
Q23 | Which of the following terms matches closest with ‘Automatic TellerMachines’?
  • Divisional Offices
  • Branch Offices
  • Agents
  • Information Kiosks
Answer: Information Kiosks
Q24 | Which of the following terms matches closest with ‘Foreclosure’?
  • Surrender Value
  • Nominee
  • Death Claim
  • Maturity Claims
Answer: Surrender Value
Q25 | Find out which of the given statements is incorrect
  • An organisation must have a purpose
  • An organisation is identified by its actions
  • An organisation is identified by the building it occupies
  • A organisation can sue and be sued
Answer: An organisation is identified by the building it occupies
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