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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