Risk Management And Insurance Set 1
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This set of Risk Management and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Risk Management And Insurance Set 1
Q1 | ….. is a condition in which there is a possibility of an adverse deviation from a desiredoutcome that is expected or hope for.
- Loss
- Profit
- Risk
- Uncertainty
Q2 | Relative variation of actual loss from expected loss is called………
- Subjective risk
- Objective risk
- Actual loss
- Expected loss
Q3 | Risk is measurable……..
- Loss
- Profit
- Uncertainty
- None of the above
Q4 | …………. Refers to a situation where outcome is not certain
- Uncertainty
- Loss
- Insurance
- None of the above
Q5 | If any risk is concerned with financial loss, it is termed as………..
- Business risk
- Business loss
- Financial risk
- Insurable claim
Q6 | ………… another name of fundamental risk
- Systematic risk
- Interest rate risk
- Group risk
- Loss
Q7 | Pure risk situation are those where there is a possibility of………….
- Loss or no loss
- Loss
- Variation
- None of the above
Q8 | Speculative risk is a situation in which…………………… is possible
- Loss
- Profit
- Either a profit or loss
- None of the above
Q9 | Changes is technology is a example for …………
- Pure risk
- Speculative risk
- Static risk
- Dynamic risk
Q10 | In static risk.............
- Losses cannot be predicted
- Losses can be predicted
- Losses are not easily predictable
- None of these
Q11 | Risk which can be measured using numerical scale are known as
- Quantifiable risk
- Static risk
- Dynamic risk
- Speculative risk
Q12 | ………………is an example for personal risk
- Business loss
- Fire occurred in business premises
- Risk of premature death
- None of the above
Q13 | Property damaged because of earthquake is…………risk
- Risk for general insurance
- Non insurable risk
- Property risk
- None of the above
Q14 | Spreading of risk otherwise termed as……….
- Shifting of risk
- Acceptance of risk
- Reduction of risk
- Spreading of risk
Q15 | Insurance is a risk management technique involving…
- Risk retention
- Risk avoidance
- Loss Control
- Risk transfer
Q16 | An escape from disability or death in a plain crash by refusing to fly is called…
- Risk shifting
- Risk avoidance
- Risk hedging
- None of these
Q17 | ………… is the process of reducing frequencies and severely of losses.
- Loss prevention
- Loss Control
- Avoidance of risk
- None of the above
Q18 | Willingness to retain whole or part of a given risk is called…………..
- Risk retention
- Risk carrying
- Risk bearing
- None of the above
Q19 | Annual maintenance contract for computers is …………
- Risk avoidance
- Loss reduction
- Insurance
- Transfer of risk by contract
Q20 | Which of the following is a method of risk identification.
- Insurance
- Standard deviation method
- Checklist method
- None of these
Q21 | Risk evaluation breaks down into two parts. They are:
- Probability of loss occurring and its severity
- Risk calculation and risk analysis
- Loss calculation and avoidance
- None of the above
Q22 | …………….. is planned retention by which the part or full of the exposure arising a riskfactor is retained by the firm
- Reinsurance
- Self insurance
- Risk financing
- None of the above
Q23 | IRDA Act passed in the year…………..
- 1972
- 1999
- 1989
- 2000
Q24 | A policy for protecting a group of employees in a firm is called………..
- General Insurance
- State life insurance
- Group insurance
- None of the above
Q25 | Committee constituted to reform insurance sector constituted in the 1993 was headed by
- R.N. Malhothra
- S. Narasimham
- Manmohan Singh
- Rangarajan