On This Page

This set of Insurance Management Multiple Choice Questions & Answers (MCQs) focuses on Insurance Management Set 3

Q1 | Find out which of the given statements is incorrect
  • Accounts department has to monitor cash flow from subordinate offices
  • Marketing department has to monitor business inflow
  • Marketing department has to monitor performance of agents
  • Actuarial department is responsible for settling death claims
Q2 | Which of the following terms is dissimilar to the other four in the context ofdeath claims in life insurance?
  • Early claims
  • Non-early claims
  • Foreclosure
  • Claimant’s statement
Q3 | As per structured formula under the Motor Vehicle Act, victims of fatalinjuries are paid compensation on the basis of:
  • Age and sex
  • Age and number of dependents
  • Income and size of family
  • Age and income
Q4 | Time Policies relate to:
  • Fire insurance
  • Hull insurance
  • Personal Accident insurance
  • Workmen’s Compensation insurance
Q5 | Which clause specifies the perils insured in a scheduled form of policy?
  • Preamble Clause
  • Recital Clause
  • Operative Clause
  • Consideration Clause
Q6 | Which of the following types of insurances is mandatory?
  • Motor Own Damage
  • Motor Third Party Legal Liability
  • Personal Accident Insurance
  • Product Liability
Q7 | The minimum paid up capital required for a General Insurance Company isRs. ____
  • 25 crores
  • 50 crores
  • 75 crores
  • 100 crores
Q8 | In ‘Hit and Run’ cases, claims are settled from _______
  • Solatium Fund
  • IRDA’s contingency Fund
  • Insuring Company’s reserves
  • Motor Third Party Pool
Q9 | Select the expanded form of FPA as used in insurance
  • Freight Payable Assured
  • Free of Particular Average
  • Fire Perils Added
  • Fixed Peripherals Added
Q10 | Select the expanded form of ALOP used in insurance
  • Advance Loss of Profits insurance
  • Agreed Loss of Profits insurance
  • Additional Loss of Profits insurance
  • Associated Loss of Profits insurance
Q11 | Insurance cannot prevent the occurrence of risk but it provides for the………
  • losses of risk
  • occurrence of risk
  • chance of risk
  • none of these
Q12 | The document which embodies the contract in insurance is called…………
  • security
  • policy
  • certificate
  • none of these
Q13 | ……… principle in insurance means maximum truth.
  • subrogation
  • causa proxima
  • insurable interest
  • uberrima fides
Q14 | Which of the following terms matches closest with ‘Composite Policy’?
  • Shopkeepers’ insurance
  • Janatha Personal Accident insurance
  • Critical Care Health insurance
  • Marine Cargo insurance
Q15 | Members of the Insurance Advisory Committee are drawn to represent theinterests of different groups like:
  • Surveyors, agents, advocates
  • Commerce, transport,
  • Consumer fora, industry, intermediaries,
  • Research bodies, organisations engaged in safety and loss prevention
Q16 | Which of the following covers is dissimilar to the other four options?
  • Loss of Passport
  • Loss of Profits
  • Loss of checked in baggage
  • Delay in receiving checked in baggage
Q17 | Which of the following types of insurances is dissimilar to the other fouroptions?
  • Builders’ Risks insurance
  • Hut insurance
  • Crop insurance
  • Livestock insurance
Q18 | Which of the following terms matches closest with ‘Asbestosis’?
  • Products
  • Pension
  • Rough Weather
  • Workmen’s Compensation
Q19 | Regarding ‘Exclusions’ find out the incorrect statement.
  • Exclusions are indicated in the policy
  • Exclusions are perils or circumstances not covered
  • Exclusions limit the coverage under the policy
  • Exclusions do not deal with risk coverage
Q20 | Which of the following statements is incorrect in respect of brokers?
  • Brokers require to undergo training before being licensed
  • Brokers are appointed by insured to take care of their interests
  • Brokers have to pass examinations before being licensed
  • Brokers should be registered companies or firms
Q21 | Which of the following terms is dissimilar to the other four options?
  • Jettison
  • Hit and Run
  • Sue and Labour
  • Salvage
Q22 | Which of the following terms is dissimilar to the other four options?
  • Post-hospitalisation expenses
  • Expenses on treatment of pre-existing diseases
  • Reinstatement value
  • Funeral expenses
Q23 | Principle of utmost good faith is also known as ………..
  • subrogation
  • causa proxima
  • insurable interest
  • uberrima fides
Q24 | …………….principle means that the insured is not entitled to make a profiton his loss.
  • subrogation
  • causa proxima
  • indemnity
  • uberrima fides
Q25 | The purpose of ………. Are to hold the negligent person responsible for theloss and prevent the insured from collecting twice for the same loss.
  • subrogation
  • causa proxima
  • indemnity
  • uberrima fides