Risk Management And Insurance Set 5

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

Bachelor of Commerce in Banking (B.Com Banking)

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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
Answer: Both the statements above are correct
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
Answer: Each member in a group policy pays the premium directly to the insurer
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
Answer: 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
Answer: Both the statements above are correct
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
Answer: 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
Answer: family history
Q7 | Guarantees for employer for the loss out of employee's dishonest is_____________.
  • burglary insurance.
  • fidelity insurance.
  • third party insurance.
  • medical insurance.
Answer: fidelity 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.
Answer: 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.
Answer: both movable and immovable properties.
Q10 | The principle of indemnity is applicable to _______ only.
  • life insurance.
  • personal accident insurance.
  • proximate cause.
  • property insurance.
Answer: property insurance.
Q11 | Except life assurance the maximum term of other insurance is _________
  • 12 months.
  • 24 months.
  • 6 months.
  • 36 months.
Answer: 12 months.
Q12 | The person whose risk is insured is called __________
  • Insured.
  • Assured.
  • Indemnity.
  • Both 1 and 2.
Answer: 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
Answer: All the above
Q14 | _______ policy in which the limits of the risks are determined by place of particularvoyage.
  • Valued.
  • Time.
  • Voyage .
  • Unvalued.
Answer: Voyage .
Q15 | _______ policy is which covers the risk during all situations.
  • Floating .
  • Wagering.
  • Valu
  • Mixed
Answer: Mixed
Q16 | The term ‘run off’ or ‘fully declared’ refers to ___________
  • Floating policy.
  • Wagering policy.
  • Builders risk policy.
  • Open cover policy.
Answer: Floating policy.
Q17 | Wagering policy is otherwise termed as _________
  • Policy proof of interest.
  • Open policy.
  • Builders risk policy.
  • Port risk policies.
Answer: Policy proof of interest.
Q18 | Risk insured against death is a contract of ________
  • assurance.
  • agreement.
  • indemnity.
  • caveat emptor.
Answer: assurance.
Q19 | The term ‘Assurance’ refers to ________
  • Life Insurance Business.
  • Marine Insurance Business.
  • Fire Insurance Business.
  • Motor Vehicle Business.
Answer: Life Insurance Business.
Q20 | The proportion of the risk which the direct insurer holds on his own account refers to___________
  • Line.
  • Retention.
  • Retrocession.
  • Ceding insurer.
Answer: Retention.
Q21 | IRDA refers to_________
  • Insurance Regulatory Development Authority.
  • Indian Regulatory Development Authority.
  • Institute of Regulatory Development Authority.
  • Insurance Regulatory Development Association.
Answer: Insurance Regulatory Development Authority.
Q22 | An international code of York Antwerp Rules applied to__________
  • marine losses.
  • losses of fire.
  • losses of crop.
  • losses of human life.
Answer: marine losses.
Q23 | Cargo ship caught by fire is an example of __________
  • particular average loss.
  • general average loss.
  • constructive total loss.
  • actual total loss.
Answer: general average loss.
Q24 | ___________ policy is granted only in respect of stock of inventories of the insured underfire insurance business.
  • Floating.
  • Declarations.
  • Replacement.
  • Valued.
Answer: Declarations.
Q25 | Insurance business is based on ___________
  • Parkinson’s law.
  • Newton’s law.
  • The theory of probability and law of large numbers.
  • Boyle’s law.
Answer: The theory of probability and law of large numbers.
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