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This set of Insurance Management Multiple Choice Questions & Answers (MCQs) focuses on Insurance Management Set 9

Q1 | ________ is the total premium that a policy holder pays
  • Gross premium
  • Avg. premium
  • Partial premium
  • All of these
Q2 | ________ means a premium which remains unchanged through out the lifeof a policy.
  • Avg. premium
  • Gross premium
  • Total premium
  • Level premium
Q3 | The time frame for which an insurance policy provides coverage is knownas ________
  • Policy term
  • Policy loan
  • Policy mode
  • None
Q4 | An exceptionally large risk is known as ________
  • Great risk
  • Jumbo risk
  • Giant risk
  • None
Q5 | A person who gains or benefits as per a contract is known as ______
  • Beneficiary
  • Annuitant
  • Assurer
  • None
Q6 | Intimation of Death is the information of death to the ________
  • Beneficiary
  • Insurer
  • Both (a) and (b)
  • None
Q7 | Gross premium means Net premium plus ________
  • Profit
  • Loss
  • Expense
  • Expense loading
Q8 | ________ is a form of health insurance against loss by accidental bodilyinjury
  • Property insurance
  • Marine insurance
  • Personal insurance
  • Accident insurance
Q9 | Taylor Tobacco Company is concerned that the company may be heldliable in a court of law and forced to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses is known as
  • moral hazard.
  • particular risk
  • speculative risk
  • legal hazard.
Q10 | All of the following are social costs associated with insurance EXCEPT
  • the expense of doing business.
  • fraudulent claims.
  • inflated claims.
  • increased cost of capital.
Q11 | Bronson Company manufactures tools that it sells to wholesalers. Bronsonis concerned that it may be unable to collect money the company is owed by the wholesalers. To address this risk, Bronson Company could purchase
  • a fidelity bond.
  • general liability insurance.
  • allied lines insurance.
  • credit insurance.
Q12 | All of the following are financial risks which may be faced by businessorganizations EXCEPT
  • interest rate risk.
  • commodity price risk.
  • product liability risk.
  • currency exchange rate risk.
Q13 | ………….of India offers a range of credit risk insurance covers to exportersagainst loss in export of goods and services.
  • RBI
  • LIC
  • ECGC
  • NAIS
Q14 | NAIS stands for
  • National Agricultural Insurance Scheme
  • National Agro Insurance Scheme
  • National Accident Insurance Scheme
  • National Authority for Insurance Schemes.
Q15 | In India ……….controls and regulate the rates, advantages , terms andconditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation.
  • IRDA
  • TAC
  • GIC
  • LIC
Q16 | TAC stands for
  • Trade Advisory Corporation
  • Trade Advisory Committee
  • Tariff Advisory Corporation
  • Tariff Advisory Committee
Q17 | ……..is pricing of insurance products driven by market forces
  • tariffing
  • de-tariffing
  • equilibrium pricing
  • fixed pricing
Q18 | ………….is an amount in excess of the value of insurers assets over theamount of liabilities.This amount is prescribed by IRDA.
  • profit
  • goodwill
  • margin
  • solvency margin.
Q19 | …………are those where a part of the premium is charged for the risk coverand the rest is invested in selected mutual funds as per the choice of the investor.
  • mutual fund insurance
  • unit-linked insurance
  • double insurance
  • partial insurance