Risk Management And Insurance Set 6

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

Bachelor of Commerce in Banking (B.Com Banking)

Practice Mode Previous
On This Page

This set of Risk Management and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Risk Management And Insurance Set 6

Q1 | Duty to minimize loss is incorporated in the policies through _________
  • warranties.
  • Conditions.
  • clauses.
  • declaratives
Answer: Conditions.
Q2 | _______ means those risks which involve a situation where there is a possibility of gain.
  • Personal risk.
  • Speculative risk.
  • Other risk.
  • Liability risk.
Answer: Speculative risk.
Q3 | A policy protecting a group of persons, usually employees of a firm generally called as ___________
  • Fire insurance policy.
  • Group insurance policy.
  • Marine insurance.
  • Automobile insurance.
Answer: Group insurance policy.
Q4 | When was IRD Act passed?
  • 1972.
  • 1999.
  • 1989.
  • 2000.
Answer: 1999.
Q5 | Which of the following is the similarity between insurance and gambling?
  • The amount of loss to be paid is known before hand.
  • Promise to pay on the happening of an event.
  • Both the parties win on happening of an event.
  • Both are enforceable at law.
Answer: The amount of loss to be paid is known before hand.
Q6 | A human life is an income-generating asset______________
  • true.
  • false.
  • partially true.
  • partially false.
Answer: true.
Q7 | Which of the following risks are insurable?
  • Speculative.
  • Economic.
  • Sure to happen.
  • Other risks.
Answer: Economic.
Q8 | The premium actually paid by the policy holder depends upon___________
  • the wealth of the person to be insured.
  • the level of risk assessed by the insurer.
  • the tables of rates printed by the insurer.
  • agents report.
Answer: the level of risk assessed by the insurer.
Q9 | Which one of the following statement is correct?
  • A life insurance policy is a contract, enforceable in a court of law.
  • A life insurance policy is not required to be stamped.
  • Both the statements are correct.
  • Both the statements are wrong.
Answer: A life insurance policy is a contract, enforceable in a court of law.
Q10 | Notification of Alteration in Risk is a condition _____________.
  • precedent to liability.
  • subsequent to liability.
  • precedent to the contract.
  • subsequent to the contract.
Answer: subsequent to the contract.
Q11 | As the age increases risk on the life _______.
  • Increases.
  • Decreases.
  • does not change.
  • Moderate.
Answer: Increases.
Q12 | If the interest rates in the market are higher, then cost of insurance _________.
  • Increases.
  • moderate.
  • Decreases.
  • no change.
Answer: Decreases.
Q13 | One who shares the risk under an insurance policy or policies is known as __________.
  • Assurer.
  • Insurer.
  • Co-insurer.
  • Agent.
Answer: Co-insurer.
Q14 | The concept of bancassurance originated in ___________.
  • France.
  • U.S.A.
  • Engla
Answer: France.
Q15 | Individuals define risk as____________.
  • deviation from some expected return.
  • a cost of investing.
  • a quantitative measure.
  • “losing money.”
Answer: a cost of investing.
Q16 | Committee of reforms in insurance sectors during 1993 headed by ________.
  • R.N. Malhotra.
  • S. Narashiman.
  • Manmohan Singh.
  • P.Chidambaram.
Answer: R.N. Malhotra.
Previous