Risk Management And Insurance Set 3
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This set of Risk Management and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Risk Management And Insurance Set 3
Q1 | Insurance is a risk management technique involving____________
- risk retention.
- risk avoidance.
- loss control.
- risk transfer.
Q2 | Risk management follows a systematic process which involves _______ steps.
- two.
- three.
- four.
- five.
Q3 | Organizations are mainly concerned with managing
- pure risks.
- speculative risks.
- personal risks.
- other risks
Q4 | The first step in risk management process is
- risk avoidance.
- risk identification.
- insurance.
- risk evaluation.
Q5 | Which of the following steps in the risk management process helps in determining suminsured under policies?
- risk identification.
- risk retention.
- risk transfer.
- risk evaluation.
Q6 | Main emphasis of risk management is on
- risk retention.
- reduction of cost of handling risk.
- risk transfer.
- insurance.
Q7 | When the subject is partially lost by a peril insured against, it is called ___________
- General average loss.
- Constructive total loss.
- Actual total loss.
- Particular average loss.
Q8 | The Concept of Insurance is ___________
- to share losses by many
- to make money out of death
- to earn interest
- to earn a status
Q9 | Insurance covers the risk of most certain event _____
- birth of a person
- protection of the childhood
- Protection in old age
- death of a person
Q10 | Insurance cover _______
- protects assets
- prevents loss
- reduces the impact of loss
- insurances immorality
Q11 | The person whose risk is insured a is called ____________
- Insured
- Assured
- Indemnity
- Both a and b
Q12 | The person who agrees to compensate the loss arisingfrom the risk is called the ______
- insurer
- assurer
- underwriter
- all the above
Q13 | Risk insured against death is a contract of _________
- assurance
- agreement
- indemnity
- disagreement
Q14 | ________ is a document which provides evidence of the contract of insurance.
- Proposal form
- Policy form
- Cover note
- Certificate of Insurance
Q15 | The proportion of the risk which the direct insurer holds on his own account refers to_______
- Line
- Retention
- Retrocession
- Ceding insurer
Q16 | A Re-insurance of re-insurance refers to _____
- Line
- Retention
- Retrocession
- Cession
Q17 | Reinsurance also termed as ______
- insurance of insurance
- reinsurance of reinsurance
- double insurance
- reinsurance
Q18 | When the same risk and subject matter is insured with more than one insurer is called as _______
- Double Insurance
- Over Insurance
- Reinsurance
- Non-Proportional Reinsurance
Q19 | When the amount for which a subject matter is insured is more than its actual value it iscalled _____
- Double Insurance
- Over Insurance
- Reinsurance
- Non-Proportional Reinsurance
Q20 | The business of insurance is related to protection of ________
- status
- savings
- economic value of assets
- profits
Q21 | Who are the beneficiaries of Insurance?
- Society
- Individual
- Business
- All of these
Q22 | In insurance contracts, the insurance company is also known as ________
- Insured
- Beneficiary
- Insurer
- policy holder
Q23 | For introduction of a group scheme, we need a ______
- Large group of persons
- Small group of persons
- Homogeneous group
- Insured group
Q24 | When choosing group life insurance, most groups buy _______
- whole life insurance
- one year renewable group term assurance
- variable life insurance
- universal life insurance
Q25 | On the death of the bread-earner, two losses occur in the family-one is loss of human lifeand the other _____
- Loss of insurance
- Loss of investment
- Loss of bank deposits
- Earning power of family