Risk Management And Insurance Set 5
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This set of Risk Management and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Risk Management And Insurance Set 5
Q1 | Which one of the following statement is correct?
- Group insurance covers a large number of persons in the policy
- Group insurance is relatively cheaper than individual insurances
- Both the statements above are correct
- Both statements above are wrong
Q2 | Which one of the following statement is correct?
- A master policy is issued in a group insurance policy.
- Each member in a group policy pays the premium directly to the insurer
- Both statements above are correct
- Both the statements above are wrong
Q3 | Which one of the following is true for a group policy?
- Copies of the master policy are given to all members by the insurer.
- The group has to be formed exclusively for the purpose of insurance
- Entry into the scheme and exit out of it, is at the option of the members.
- The amount of the cover is determined by the scheme
Q4 | State which one of the following statement is correct?
- A trade union can take out a group insurance policy
- The cover for an employee can be equal to his age multiplied by a fixed number
- Both the statements above are correct
- Both the statements above are wrong
Q5 | One of the fundamental principles of life insurance is ______
- there is an insurer and policy holder
- utmost good faith
- insurable interest
- Both (b) and (c
Q6 | Facts which need to be disclosed is ____
- facts of common knowledge
- facts which lessen the risks
- facts which every one is supposed to know in general
- family history
Q7 | Guarantees for employer for the loss out of employee's dishonest is_____________.
- burglary insurance.
- fidelity insurance.
- third party insurance.
- medical insurance.
Q8 | This policy covers all risks to the ship and its cargo while the ship is at a particular port ___________.
- Voyage policy.
- floating policy.
- time policy.
- port risk policy.
Q9 | Fire insurance can be taken in respect of_____.
- movable property only.
- immovable property only.
- both movable and immovable properties.
- persons only.
Q10 | The principle of indemnity is applicable to _______ only.
- life insurance.
- personal accident insurance.
- proximate cause.
- property insurance.
Q11 | Except life assurance the maximum term of other insurance is _________
- 12 months.
- 24 months.
- 6 months.
- 36 months.
Q12 | The person whose risk is insured is called __________
- Insured.
- Assured.
- Indemnity.
- Both 1 and 2.
Q13 | The person who agrees to compensate the loss arising from the risk is called the _____
- Insurer.
- Assurer.
- Underwriter.
- All the above
Q14 | _______ policy in which the limits of the risks are determined by place of particularvoyage.
- Valued.
- Time.
- Voyage .
- Unvalued.
Q15 | _______ policy is which covers the risk during all situations.
- Floating .
- Wagering.
- Valu
- Mixed
Q16 | The term ‘run off’ or ‘fully declared’ refers to ___________
- Floating policy.
- Wagering policy.
- Builders risk policy.
- Open cover policy.
Q17 | Wagering policy is otherwise termed as _________
- Policy proof of interest.
- Open policy.
- Builders risk policy.
- Port risk policies.
Q18 | Risk insured against death is a contract of ________
- assurance.
- agreement.
- indemnity.
- caveat emptor.
Q19 | The term ‘Assurance’ refers to ________
- Life Insurance Business.
- Marine Insurance Business.
- Fire Insurance Business.
- Motor Vehicle Business.
Q20 | The proportion of the risk which the direct insurer holds on his own account refers to___________
- Line.
- Retention.
- Retrocession.
- Ceding insurer.
Q21 | IRDA refers to_________
- Insurance Regulatory Development Authority.
- Indian Regulatory Development Authority.
- Institute of Regulatory Development Authority.
- Insurance Regulatory Development Association.
Q22 | An international code of York Antwerp Rules applied to__________
- marine losses.
- losses of fire.
- losses of crop.
- losses of human life.
Q23 | Cargo ship caught by fire is an example of __________
- particular average loss.
- general average loss.
- constructive total loss.
- actual total loss.
Q24 | ___________ policy is granted only in respect of stock of inventories of the insured underfire insurance business.
- Floating.
- Declarations.
- Replacement.
- Valued.
Q25 | Insurance business is based on ___________
- Parkinson’s law.
- Newton’s law.
- The theory of probability and law of large numbers.
- Boyle’s law.