Risk Management And Insurance Set 4
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This set of Risk Management and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Risk Management And Insurance Set 4
Q1 | Consideration on the part of the life insured in respect of a life insurance contract is _______
- a promise to take a new policy
- the insured promise to pay the premium under the policy
- the payment made towards premium by the insured
- proposal completed and signed by the person
Q2 | The policy holder’s duty to disclose material facts lies at the time of ______
- taking a policy
- revival of policy
- reinstatement of surrendered policy
- all of the above
Q3 | Master policy is issued for _______
- Term insurance schemes
- permanent insurance
- individual insurance
- group insurance schemes
Q4 | Who pays premium under social security group insurance scheme?
- Every member of the group
- Panchayat of the village
- 50% by a social security fund maintained by LIC of India
- LIC of India
Q5 | Subrogation means ______
- something of monetary value
- to make good loss
- payment of premium
- transfer of rights of an insured to another person
Q6 | What is full form of FPA in the context of marine underwriting?
- Foreign Policy Association
- Free of Particular Average
- Free Port Association
- Food and Perishable Accounting
Q7 | Premium fixed by insurance company must be sufficient to _____
- meet the claims
- cover the expenses
- both (a) and (b)
- none of these
Q8 | Broker’s Association of India was granted recognition by IRDA on _________.
- Dec 11, 2001.
- Dec 11, 2002.
- Dec 11, 1999.
- Dec 11, 2003.
Q9 | Foreign equity participation is allowed in insurance sector up to a limit of ____ percent.
- 80.
- 73.
- 49.
- 26 .
Q10 | Moral hazard may be suspected in cases where _____
- the life to be insured is old.
- the insurance is for a very large sum insured
- in the both the cases
- none of the above cases
Q11 | Which one of the following statements is correct?
- The underwriter assesses the risk
- No policy can be issued without underwriter decision
- Both (a) an (b) statements are correct
- Both (a) and (b) statements are wrong
Q12 | Which one of the following statements is correct?
- Underwriting is done only when there is a medical examination
- Medical examination is necessary before a policy can be issued
- Both (a) an (b) statements are correct
- Both (a) and (b) statements are wrong
Q13 | Which one of the following statements is correct?
- Workingwomen are treated at par with men
- Educated women are treated at par with men
- Both (a) an (b) statements are correct
- Both (a) and (b) statements are wrong
Q14 | Financial underwriting is done to evaluate ____
- the probability of the policy lapsing in future
- the possibility of moral hazard
- Both (a) an (b) statements are correct
- Both (a) and (b) statements are wrong
Q15 | The net premium will be ______
- less than the risk premium
- more than the risk premium
- calculated by adding expenses to the risk premium
- more than the pure premium
Q16 | When interest rates fall, the tabular premium rates are likely to _______
- increase
- decrease
- remain the same
- equal
Q17 | The reason for charging level premium is _______
- risk increases as age increases
- it is convenient to the policyholders
- it is convenient to the insurer
- all the above reasons
Q18 | What is meant by a claim under an insurance policy?
- Any demand made by the policy holder on the insurer
- A demand to fulfill the policyholders obligations
- A demand to fulfill the insurer's obligations
- All the three above
Q19 | Which one of the following statement is correct?
- A death claim within two years of commencement is treated as an early claim
- A death claim within two years of revival is treated as an early claim
- Both (a) and (b) statements are correct
- Both (a) an (b) statements are wrong
Q20 | Which one of the following statement is correct?
- Maturity proceeds are paid to the nominee, if the policyholder dies earlier
- Maturity proceeds are paid to the heirs, if the policy holders dies earlier
- Both the above statements are correct
- Both the above statements are wrong
Q21 | Which one of the following statement is correct?
- No claim is paid unless the original policy is produced
- Claim can be paid even without the original policy, if it is lost
- Both the above statements are correct
- Both the above statements are wrong
Q22 | Which one of the following statement is correct?
- In the case of SSS policies, the grace period is one month
- If the due date is 27th February the grace period ends on 26th March
- Both (a) and (b) statements are correct
- Both (a) and (b) statements are wrong
Q23 | Which one of the following statement is correct?
- If death occurs in grace period, the premium due is waived.
- The date of payment of premium is the date on which the cheque is cleared
- Both (a) and (b) statements are correct
- Both (a) and (b) statements are wrong
Q24 | Which one of the following statement is correct?
- When a policy lapses, the policy holders loses everything
- When a policy lapses, some benefits are protected
- Both statements are Correct
- Both the statements are wrong
Q25 | Which one of the following statement is correct?
- In group insurance, a single policy is issued covering many persons
- A master policy covers servants of a master
- Both the statements above are correct
- Both statements above are wrong