Insurance Management Set 3 MCQs

Q1 | Find out which of the given statements is incorrect

Accounts department has to monitor cash flow from subordinate offices

Marketing department has to monitor business inflow

Marketing department has to monitor performance of agents

Actuarial department is responsible for settling death claims

Q2 | Which of the following terms is dissimilar to the other four in the context ofdeath claims in life insurance?

Early claims

Non-early claims

Foreclosure

Claimant’s statement

Q3 | As per structured formula under the Motor Vehicle Act, victims of fatalinjuries are paid compensation on the basis of:

Age and sex

Age and number of dependents

Income and size of family

Age and income

Q4 | Time Policies relate to:

Fire insurance

Hull insurance

Personal Accident insurance

Workmen’s Compensation insurance

Q5 | Which clause specifies the perils insured in a scheduled form of policy?

Preamble Clause

Recital Clause

Operative Clause

Consideration Clause

Q6 | Which of the following types of insurances is mandatory?

Motor Own Damage

Motor Third Party Legal Liability

Personal Accident Insurance

Product Liability

Q7 | The minimum paid up capital required for a General Insurance Company isRs. ____

25 crores

50 crores

75 crores

100 crores

Q8 | In ‘Hit and Run’ cases, claims are settled from _______

Solatium Fund

IRDA’s contingency Fund

Insuring Company’s reserves

Motor Third Party Pool

Q9 | Select the expanded form of FPA as used in insurance

Freight Payable Assured

Free of Particular Average

Fire Perils Added

Fixed Peripherals Added

Q10 | Select the expanded form of ALOP used in insurance

Advance Loss of Profits insurance

Agreed Loss of Profits insurance

Additional Loss of Profits insurance

Associated Loss of Profits insurance

Q11 | Insurance cannot prevent the occurrence of risk but it provides for the………

losses of risk

occurrence of risk

chance of risk

none of these

Q12 | The document which embodies the contract in insurance is called…………

security

policy

certificate

none of these

Q13 | ……… principle in insurance means maximum truth.

subrogation

causa proxima

insurable interest

uberrima fides

Q14 | Which of the following terms matches closest with ‘Composite Policy’?

Shopkeepers’ insurance

Janatha Personal Accident insurance

Critical Care Health insurance

Marine Cargo insurance

Q15 | Members of the Insurance Advisory Committee are drawn to represent theinterests of different groups like:

Surveyors, agents, advocates

Commerce, transport,

Consumer fora, industry, intermediaries,

Research bodies, organisations engaged in safety and loss prevention

Q16 | Which of the following covers is dissimilar to the other four options?

Loss of Passport

Loss of Profits

Loss of checked in baggage

Delay in receiving checked in baggage

Q17 | Which of the following types of insurances is dissimilar to the other fouroptions?

Builders’ Risks insurance

Hut insurance

Crop insurance

Livestock insurance

Q18 | Which of the following terms matches closest with ‘Asbestosis’?

Products

Pension

Rough Weather

Workmen’s Compensation

Q19 | Regarding ‘Exclusions’ find out the incorrect statement.

Exclusions are indicated in the policy

Exclusions are perils or circumstances not covered

Exclusions limit the coverage under the policy

Exclusions do not deal with risk coverage

Q20 | Which of the following statements is incorrect in respect of brokers?

Brokers require to undergo training before being licensed

Brokers are appointed by insured to take care of their interests

Brokers have to pass examinations before being licensed

Brokers should be registered companies or firms

Q21 | Which of the following terms is dissimilar to the other four options?

Jettison

Hit and Run

Sue and Labour

Salvage

Q22 | Which of the following terms is dissimilar to the other four options?

Post-hospitalisation expenses

Expenses on treatment of pre-existing diseases

Reinstatement value

Funeral expenses

Q23 | Principle of utmost good faith is also known as ………..

subrogation

causa proxima

insurable interest

uberrima fides

Q24 | …………….principle means that the insured is not entitled to make a profiton his loss.

subrogation

causa proxima

indemnity

uberrima fides

Q25 | The purpose of ………. Are to hold the negligent person responsible for theloss and prevent the insured from collecting twice for the same loss.

subrogation

causa proxima

indemnity

uberrima fides