Risk Management And Insurance Set 2

Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance),

Bachelor of Commerce in Banking (B.Com Banking)

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This set of Risk Management and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Risk Management And Insurance Set 2

Q1 | When the amount for which a subject matter is insured is more that its actual value. It iscalled…..
  • Double insurance
  • Over insurance
  • Over premium
  • None of these
Answer: Over insurance
Q2 | Expansion of IRDA is…………….
  • Insurance reforms and development agency
  • Insurance restriction and development authority
  • Insurance regulatory and development authority
  • None of the above
Answer: Insurance regulatory and development authority
Q3 | First private life insurance company was registered in India in……….
  • 1999
  • 2000
  • 2002
  • 1978
Answer: 2000
Q4 | When did Government of India nationalized life insurance business.
  • 1956
  • 1978
  • 1991
  • 2002
Answer: 1956
Q5 | …………….. is a policy where the insurer undertakes to make good the loss upto the amountmentioned in the policy
  • Specific policy
  • Valued policy
  • Average policy
  • None of these
Answer: Average policy
Q6 | ………… Clause generally inserted in all general insurance contract to discourage underinsurance
  • Specific clause
  • General clause
  • Valuation clause
  • Average clause
Answer: Average clause
Q7 | Who pays premium under social security group insurance?
  • Every member of the group
  • Government
  • LIC
  • None of the above
Answer: LIC
Q8 | …………..is concerned with the conversion of a firms asset and earning power against risk ofaccidental loss.
  • Risk retention
  • Risk management
  • Risk control
  • Risk identification
Answer: Risk identification
Q9 | If the market interest rate is higher, the cost of insurance…
  • Increases
  • Moderate
  • Decreases
  • No change
Answer: Decreases
Q10 | As age increases risk on the life………..
  • Increases
  • Decreases
  • No change
  • None of the above
Answer: Increases
Q11 | Premium of a policy is calculated on the basis of……
  • Income of the insured
  • Agent’s report
  • Risk associated with the policy
  • None of the above
Answer: Risk associated with the policy
Q12 | “Human life is an income generating asset”. The statement is……
  • True
  • Partly true
  • False
  • Partly false
Answer: True
Q13 | Maximum period of a policy in case of insurance other than life insurance is…..
  • 12 months
  • 24 months
  • No limit
  • None of these
Answer: 12 months
Q14 | The business of insurance is related to protection of…………
  • Status
  • Economic value of asset
  • Savings
  • Profit
Answer: Economic value of asset
Q15 | Reinsurance also termed as…..
  • Double insurance
  • Reinsurance of reinsurance
  • Insurance of insurance
  • None of these
Answer: Insurance of insurance
Q16 | The danger of loss from the unforeseen circumstances in future refers to _____
  • Risk
  • Perils
  • Hazards
  • Damage
Answer: Risk
Q17 | _________ is concerned with the conversion of a firm’s asset and earning power againstrisks of accidental loss.
  • Risk retention.
  • Risk management.
  • Risk control.
  • Risk identification.
Answer: Risk management.
Q18 | ________ involved those losses that occur even if there were no changes in the economicenvironment.
  • Dynamic risk.
  • Static risk.
  • Fundamental risk.
  • Particular risk.
Answer: Static risk.
Q19 | Risks are not suited to treatment by insurance refers to ____________
  • Static risk.
  • Property risk.
  • Dynamic risk.
  • Liability risk.
Answer: Dynamic risk.
Q20 | Fundamental risk is also termed as _________
  • Particular risk.
  • Speculative risk.
  • Group risk.
  • Pure risk.
Answer: Group risk.
Q21 | Unemployment, war, inflation, earthquakes etc., are the examples of ________
  • Pure risk.
  • Particular risk.
  • Personal risk.
  • Fundamental risk.
Answer: Fundamental risk.
Q22 | Any risk involved a situation where there is a possibility of gain refers to ________
  • Liability risk.
  • Personal risk.
  • Pure risk.
  • Speculative risk.
Answer: Speculative risk.
Q23 | Direct or Consequential losses refer to _________
  • Dynamic risk.
  • Particular risk.
  • Property risk.
  • Pure risk.
Answer: Property risk.
Q24 | Spreading of risk otherwise termed as _________
  • Shifting of risk.
  • Acceptance of risk.
  • Reduction of risk.
  • Spreading of risk.
Answer: Spreading of risk.
Q25 | The principle of prevention is better than cure refers to __________
  • Avoiding of risk.
  • Reduction of risk.
  • Transferring of risk.
  • Shifting of risk.
Answer: Avoiding of risk.
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