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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