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This set of Insurance Management Multiple Choice Questions & Answers (MCQs) focuses on Insurance Management Set 7

Q1 | __________ means insuring a risk with two or more insurers and the totalsum insured also exceeds the actual value of the subject matter.
  • Reinsurance
  • General Insurance
  • Single insurance
  • Double insurance
Q2 | _______ involves proportionate sharing of the insurance among more thanone insurer.
  • Reinsurance
  • Double Insurance
  • Co-insurance
  • None
Q3 | ________ means insuring again.
  • General insurance
  • Reinsurance
  • Coinsurance
  • Double insurance
Q4 | The proportion of the risk which the direct insurer holds on his ownaccount is called _________
  • Cession
  • Retention
  • Retrocession
  • Line
Q5 | Re-insurer is the insurer who grants a guarantee from the _______
  • Ceding insurer
  • Direct insurer
  • Underwriter
  • Line
Q6 | From the following which is not a non-proportional form of reinsurance?
  • Excess of loss method
  • Pools method of re insurance
  • Treaty method of reinsurance
  • Quata Method of reinsurance
Q7 | When the amount for which a subject matter is insured is more than itsactual value, it is called _________
  • Reinsurance
  • Double insurance
  • Over insurance
  • None
Q8 | ________ insurance means an alternative to purchasing insurance in acommercial market.
  • External
  • Internal
  • Double
  • Re insurance
Q9 | __________ Insurance is a contract to provide a measure of financialsupport to farmers in the event of a crop failure due to drought or flood.
  • Cattle
  • Crop
  • Burglary
  • Fire
Q10 | ________ means the transfer of all the rights and remedies available to theinsured in respect of the subject matter to the insurer after indemnity has been effected.
  • Subrogation
  • Indemnity
  • Contribution
  • None
Q11 | An unlooked mishap or an untoward event which is not expected ordesigned
  • Risk
  • Accident
  • Loss
  • None
Q12 | Property Insurance may not include ___________
  • Burglary
  • Fidelity
  • Insolvency
  • Sickness
Q13 | _________ is known as Rashtriya Krishi Bima Yojana
  • Crop insurance
  • Hut Insurance
  • PropertyInsurance
  • None
Q14 | Crop insurance scheme came into existence in India in ________
  • 1998
  • 1999
  • 1997
  • 2000
Q15 | Crop insurance covers the risks of __________
  • Natural fire
  • Storm
  • Drought
  • Allof these
Q16 | Public liability Insurance act established in _______
  • 1990
  • 1991
  • 1992
  • 1993
Q17 | From the following which is not a type of Public Liability Risk Insurance
  • Industrial Risk Insurance
  • Industrial All Risk Insurance
  • Non - Industrial Risk Insurance
  • Business premises Insurance
Q18 | _____________ Policy issued on the basis of the number of persons assured.
  • Single life
  • Level Premium
  • Annuity
  • Multiple life
Q19 | The danger of loss from the unforeseen circumstances in future refers to_________
  • Perils
  • Hazards
  • Damage
  • Risk
Q20 | _____________ Policy is granted only in respect of stocks of inventories ofthe insured under fire insurance business.
  • Declaration
  • Floating
  • Replacement
  • Valued
Q21 | The term 'Assurance' refers to ___________
  • Life Insurance business
  • Fire insurance business
  • Motor Vehicle insurance
  • Marine insurance
Q22 | __________ provides evidence of insurance to the police and RegistrationAuthorities under Motor Vehicle Act.
  • Endorsement
  • Policy Form
  • Certificate of insurance
  • Cover note
Q23 | Policy holders are expected to pay premium on due dates, a period of 15-30days is allowed as grace to make payment of premium from the due date is _____
  • Days of grace
  • Days of indemnity
  • both
  • None
Q24 | The main cause of loss or damage is _____________
  • Proximate cause
  • Indirect Loss
  • Consequential loss
  • All of these
Q25 | The cause of a possible loss, such as fire windstorm theft etc. is known as _____
  • Peril
  • Barratry
  • both
  • None