McqMate
1. |
….. is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hope for. |
A. | Loss |
B. | Profit |
C. | Risk |
D. | Uncertainty |
Answer» C. Risk |
2. |
Relative variation of actual loss from expected loss is called……… |
A. | Subjective risk |
B. | Objective risk |
C. | Actual loss |
D. | Expected loss |
Answer» B. Objective risk |
3. |
Risk is measurable…….. |
A. | Loss |
B. | Profit |
C. | Uncertainty |
D. | None of the above |
Answer» C. Uncertainty |
4. |
…………. Refers to a situation where outcome is not certain |
A. | Uncertainty |
B. | Loss |
C. | Insurance |
D. | None of the above |
Answer» A. Uncertainty |
5. |
If any risk is concerned with financial loss, it is termed as……….. |
A. | Business risk |
B. | Business loss |
C. | Financial risk |
D. | Insurable claim |
Answer» C. Financial risk |
6. |
………… another name of fundamental risk |
A. | Systematic risk |
B. | Interest rate risk |
C. | Group risk |
D. | Loss |
Answer» C. Group risk |
7. |
Pure risk situation are those where there is a possibility of…………. |
A. | Loss or no loss |
B. | Loss |
C. | Variation |
D. | None of the above |
Answer» A. Loss or no loss |
8. |
Speculative risk is a situation in which…………………… is possible |
A. | Loss |
B. | Profit |
C. | Either a profit or loss |
D. | None of the above |
Answer» C. Either a profit or loss |
9. |
Changes is technology is a example for ………… |
A. | Pure risk |
B. | Speculative risk |
C. | Static risk |
D. | Dynamic risk |
Answer» D. Dynamic risk |
10. |
In static risk............. |
A. | Losses cannot be predicted |
B. | Losses can be predicted |
C. | Losses are not easily predictable |
D. | None of these |
Answer» B. Losses can be predicted |
11. |
Risk which can be measured using numerical scale are known as |
A. | Quantifiable risk |
B. | Static risk |
C. | Dynamic risk |
D. | Speculative risk |
Answer» A. Quantifiable risk |
12. |
………………is an example for personal risk |
A. | Business loss |
B. | Fire occurred in business premises |
C. | Risk of premature death |
D. | None of the above |
Answer» C. Risk of premature death |
13. |
Property damaged because of earthquake is…………risk |
A. | Risk for general insurance |
B. | Non insurable risk |
C. | Property risk |
D. | None of the above |
Answer» C. Property risk |
14. |
Spreading of risk otherwise termed as………. |
A. | Shifting of risk |
B. | Acceptance of risk |
C. | Reduction of risk |
D. | Spreading of risk |
Answer» A. Shifting of risk |
15. |
Insurance is a risk management technique involving… |
A. | Risk retention |
B. | Risk avoidance |
C. | Loss Control |
D. | Risk transfer |
Answer» D. Risk transfer |
16. |
An escape from disability or death in a plain crash by refusing to fly is called… |
A. | Risk shifting |
B. | Risk avoidance |
C. | Risk hedging |
D. | None of these |
Answer» B. Risk avoidance |
17. |
………… is the process of reducing frequencies and severely of losses. |
A. | Loss prevention |
B. | Loss Control |
C. | Avoidance of risk |
D. | None of the above |
Answer» B. Loss Control |
18. |
Willingness to retain whole or part of a given risk is called………….. |
A. | Risk retention |
B. | Risk carrying |
C. | Risk bearing |
D. | None of the above |
Answer» A. Risk retention |
19. |
Annual maintenance contract for computers is ………… |
A. | Risk avoidance |
B. | Loss reduction |
C. | Insurance |
D. | Transfer of risk by contract |
Answer» D. Transfer of risk by contract |
20. |
Which of the following is a method of risk identification. |
A. | Insurance |
B. | Standard deviation method |
C. | Checklist method |
D. | None of these |
Answer» C. Checklist method |
21. |
Risk evaluation breaks down into two parts. They are: |
A. | Probability of loss occurring and its severity |
B. | Risk calculation and risk analysis |
C. | Loss calculation and avoidance |
D. | None of the above |
Answer» A. Probability of loss occurring and its severity |
22. |
…………….. is planned retention by which the part or full of the exposure arising a risk factor is retained by the firm |
A. | Reinsurance |
B. | Self insurance |
C. | Risk financing |
D. | None of the above |
Answer» B. Self insurance |
23. |
IRDA Act passed in the year………….. |
A. | 1972 |
B. | 1999 |
C. | 1989 |
D. | 2000 |
Answer» B. 1999 |
24. |
A policy for protecting a group of employees in a firm is called……….. |
A. | General Insurance |
B. | State life insurance |
C. | Group insurance |
D. | None of the above |
Answer» C. Group insurance |
25. |
Committee constituted to reform insurance sector constituted in the 1993 was headed by |
A. | R.N. Malhothra |
B. | S. Narasimham |
C. | Manmohan Singh |
D. | Rangarajan |
Answer» A. R.N. Malhothra |
26. |
When the amount for which a subject matter is insured is more that its actual value. It is called….. |
A. | Double insurance |
B. | Over insurance |
C. | Over premium |
D. | None of these |
Answer» B. Over insurance |
27. |
Expansion of IRDA is……………. |
A. | Insurance reforms and development agency |
B. | Insurance restriction and development authority |
C. | Insurance regulatory and development authority |
D. | None of the above |
Answer» C. Insurance regulatory and development authority |
28. |
First private life insurance company was registered in India in………. |
A. | 1999 |
B. | 2000 |
C. | 2002 |
D. | 1978 |
Answer» B. 2000 |
29. |
When did Government of India nationalized life insurance business. |
A. | 1956 |
B. | 1978 |
C. | 1991 |
D. | 2002 |
Answer» A. 1956 |
30. |
…………….. is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy |
A. | Specific policy |
B. | Valued policy |
C. | Average policy |
D. | None of these |
Answer» C. Average policy |
31. |
………… Clause generally inserted in all general insurance contract to discourage under insurance |
A. | Specific clause |
B. | General clause |
C. | Valuation clause |
D. | Average clause |
Answer» D. Average clause |
32. |
Who pays premium under social security group insurance? |
A. | Every member of the group |
B. | Government |
C. | LIC |
D. | None of the above |
Answer» C. LIC |
33. |
…………..is concerned with the conversion of a firms asset and earning power against risk of accidental loss. |
A. | Risk retention |
B. | Risk management |
C. | Risk control |
D. | Risk identification |
Answer» D. Risk identification |
34. |
If the market interest rate is higher, the cost of insurance… |
A. | Increases |
B. | Moderate |
C. | Decreases |
D. | No change |
Answer» C. Decreases |
35. |
As age increases risk on the life……….. |
A. | Increases |
B. | Decreases |
C. | No change |
D. | None of the above |
Answer» A. Increases |
36. |
Premium of a policy is calculated on the basis of…… |
A. | Income of the insured |
B. | Agent’s report |
C. | Risk associated with the policy |
D. | None of the above |
Answer» C. Risk associated with the policy |
37. |
“Human life is an income generating asset”. The statement is…… |
A. | True |
B. | Partly true |
C. | False |
D. | Partly false |
Answer» A. True |
38. |
Maximum period of a policy in case of insurance other than life insurance is….. |
A. | 12 months |
B. | 24 months |
C. | No limit |
D. | None of these |
Answer» A. 12 months |
39. |
The business of insurance is related to protection of………… |
A. | Status |
B. | Economic value of asset |
C. | Savings |
D. | Profit |
Answer» B. Economic value of asset |
40. |
Reinsurance also termed as….. |
A. | Double insurance |
B. | Reinsurance of reinsurance |
C. | Insurance of insurance |
D. | None of these |
Answer» C. Insurance of insurance |
41. |
The danger of loss from the unforeseen circumstances in future refers to _____ |
A. | Risk |
B. | Perils |
C. | Hazards |
D. | Damage |
Answer» A. Risk |
42. |
_________ is concerned with the conversion of a firm’s asset and earning power against risks of accidental loss. |
A. | Risk retention. |
B. | Risk management. |
C. | Risk control. |
D. | Risk identification. |
Answer» B. Risk management. |
43. |
________ involved those losses that occur even if there were no changes in the economic environment. |
A. | Dynamic risk. |
B. | Static risk. |
C. | Fundamental risk. |
D. | Particular risk. |
Answer» B. Static risk. |
44. |
Risks are not suited to treatment by insurance refers to ____________ |
A. | Static risk. |
B. | Property risk. |
C. | Dynamic risk. |
D. | Liability risk. |
Answer» C. Dynamic risk. |
45. |
Fundamental risk is also termed as _________ |
A. | Particular risk. |
B. | Speculative risk. |
C. | Group risk. |
D. | Pure risk. |
Answer» C. Group risk. |
46. |
Unemployment, war, inflation, earthquakes etc., are the examples of ________ |
A. | Pure risk. |
B. | Particular risk. |
C. | Personal risk. |
D. | Fundamental risk. |
Answer» D. Fundamental risk. |
47. |
Any risk involved a situation where there is a possibility of gain refers to ________ |
A. | Liability risk. |
B. | Personal risk. |
C. | Pure risk. |
D. | Speculative risk. |
Answer» D. Speculative risk. |
48. |
Direct or Consequential losses refer to _________ |
A. | Dynamic risk. |
B. | Particular risk. |
C. | Property risk. |
D. | Pure risk. |
Answer» C. Property risk. |
49. |
Spreading of risk otherwise termed as _________ |
A. | Shifting of risk. |
B. | Acceptance of risk. |
C. | Reduction of risk. |
D. | Spreading of risk. |
Answer» D. Spreading of risk. |
50. |
The principle of prevention is better than cure refers to __________ |
A. | Avoiding of risk. |
B. | Reduction of risk. |
C. | Transferring of risk. |
D. | Shifting of risk. |
Answer» A. Avoiding of risk. |
51. |
Insurance is a risk management technique involving____________ |
A. | risk retention. |
B. | risk avoidance. |
C. | loss control. |
D. | risk transfer. |
Answer» D. risk transfer. |
52. |
Risk management follows a systematic process which involves _______ steps. |
A. | two. |
B. | three. |
C. | four. |
D. | five. |
Answer» D. five. |
53. |
Organizations are mainly concerned with managing |
A. | pure risks. |
B. | speculative risks. |
C. | personal risks. |
D. | other risks |
Answer» A. pure risks. |
54. |
The first step in risk management process is |
A. | risk avoidance. |
B. | risk identification. |
C. | insurance. |
D. | risk evaluation. |
Answer» B. risk identification. |
55. |
Which of the following steps in the risk management process helps in determining sum insured under policies? |
A. | risk identification. |
B. | risk retention. |
C. | risk transfer. |
D. | risk evaluation. |
Answer» D. risk evaluation. |
56. |
Main emphasis of risk management is on |
A. | risk retention. |
B. | reduction of cost of handling risk. |
C. | risk transfer. |
D. | insurance. |
Answer» B. reduction of cost of handling risk. |
57. |
When the subject is partially lost by a peril insured against, it is called ___________ |
A. | General average loss. |
B. | Constructive total loss. |
C. | Actual total loss. |
D. | Particular average loss. |
Answer» D. Particular average loss. |
58. |
The Concept of Insurance is ___________ |
A. | to share losses by many |
B. | to make money out of death |
C. | to earn interest |
D. | to earn a status |
Answer» A. to share losses by many |
59. |
Insurance covers the risk of most certain event _____ |
A. | birth of a person |
B. | protection of the childhood |
C. | Protection in old age |
D. | death of a person |
Answer» D. death of a person |
60. |
Insurance cover _______ |
A. | protects assets |
B. | prevents loss |
C. | reduces the impact of loss |
D. | insurances immorality |
Answer» C. reduces the impact of loss |
61. |
The person whose risk is insured a is called ____________ |
A. | Insured |
B. | Assured |
C. | Indemnity |
D. | Both a and b |
Answer» D. Both a and b |
62. |
The person who agrees to compensate the loss arisingfrom the risk is called the ______ |
A. | insurer |
B. | assurer |
C. | underwriter |
D. | all the above |
Answer» D. all the above |
63. |
Risk insured against death is a contract of _________ |
A. | assurance |
B. | agreement |
C. | indemnity |
D. | disagreement |
Answer» A. assurance |
64. |
________ is a document which provides evidence of the contract of insurance. |
A. | Proposal form |
B. | Policy form |
C. | Cover note |
D. | Certificate of Insurance |
Answer» B. Policy form |
65. |
The proportion of the risk which the direct insurer holds on his own account refers to _______ |
A. | Line |
B. | Retention |
C. | Retrocession |
D. | Ceding insurer |
Answer» B. Retention |
66. |
A Re-insurance of re-insurance refers to _____ |
A. | Line |
B. | Retention |
C. | Retrocession |
D. | Cession |
Answer» C. Retrocession |
67. |
Reinsurance also termed as ______ |
A. | insurance of insurance |
B. | reinsurance of reinsurance |
C. | double insurance |
D. | reinsurance |
Answer» A. insurance of insurance |
68. |
When the same risk and subject matter is insured with more than one insurer is called as _______ |
A. | Double Insurance |
B. | Over Insurance |
C. | Reinsurance |
D. | Non-Proportional Reinsurance |
Answer» A. Double Insurance |
69. |
When the amount for which a subject matter is insured is more than its actual value it is called _____ |
A. | Double Insurance |
B. | Over Insurance |
C. | Reinsurance |
D. | Non-Proportional Reinsurance |
Answer» B. Over Insurance |
70. |
The business of insurance is related to protection of ________ |
A. | status |
B. | savings |
C. | economic value of assets |
D. | profits |
Answer» C. economic value of assets |
71. |
Who are the beneficiaries of Insurance? |
A. | Society |
B. | Individual |
C. | Business |
D. | All of these |
Answer» D. All of these |
72. |
In insurance contracts, the insurance company is also known as ________ |
A. | Insured |
B. | Beneficiary |
C. | Insurer |
D. | policy holder |
Answer» C. Insurer |
73. |
For introduction of a group scheme, we need a ______ |
A. | Large group of persons |
B. | Small group of persons |
C. | Homogeneous group |
D. | Insured group |
Answer» C. Homogeneous group |
74. |
When choosing group life insurance, most groups buy _______ |
A. | whole life insurance |
B. | one year renewable group term assurance |
C. | variable life insurance |
D. | universal life insurance |
Answer» B. one year renewable group term assurance |
75. |
On the death of the bread-earner, two losses occur in the family-one is loss of human life and the other _____ |
A. | Loss of insurance |
B. | Loss of investment |
C. | Loss of bank deposits |
D. | Earning power of family |
Answer» D. Earning power of family |
76. |
Consideration on the part of the life insured in respect of a life insurance contract is _______ |
A. | a promise to take a new policy |
B. | the insured promise to pay the premium under the policy |
C. | the payment made towards premium by the insured |
D. | proposal completed and signed by the person |
Answer» B. the insured promise to pay the premium under the policy |
77. |
The policy holder’s duty to disclose material facts lies at the time of ______ |
A. | taking a policy |
B. | revival of policy |
C. | reinstatement of surrendered policy |
D. | all of the above |
Answer» D. all of the above |
78. |
Master policy is issued for _______ |
A. | Term insurance schemes |
B. | permanent insurance |
C. | individual insurance |
D. | group insurance schemes |
Answer» D. group insurance schemes |
79. |
Who pays premium under social security group insurance scheme? |
A. | Every member of the group |
B. | Panchayat of the village |
C. | 50% by a social security fund maintained by LIC of India |
D. | LIC of India |
Answer» C. 50% by a social security fund maintained by LIC of India |
80. |
Subrogation means ______ |
A. | something of monetary value |
B. | to make good loss |
C. | payment of premium |
D. | transfer of rights of an insured to another person |
Answer» D. transfer of rights of an insured to another person |
81. |
What is full form of FPA in the context of marine underwriting? |
A. | Foreign Policy Association |
B. | Free of Particular Average |
C. | Free Port Association |
D. | Food and Perishable Accounting |
Answer» C. Free Port Association |
82. |
Premium fixed by insurance company must be sufficient to _____ |
A. | meet the claims |
B. | cover the expenses |
C. | both (a) and (b) |
D. | none of these |
Answer» C. both (a) and (b) |
83. |
Broker’s Association of India was granted recognition by IRDA on _________. |
A. | Dec 11, 2001. |
B. | Dec 11, 2002. |
C. | Dec 11, 1999. |
D. | Dec 11, 2003. |
Answer» A. Dec 11, 2001. |
84. |
Foreign equity participation is allowed in insurance sector up to a limit of ____ percent. |
A. | 80. |
B. | 73. |
C. | 49. |
D. | 26 . |
Answer» D. 26 . |
85. |
Moral hazard may be suspected in cases where _____ |
A. | the life to be insured is old. |
B. | the insurance is for a very large sum insured |
C. | in the both the cases |
D. | none of the above cases |
Answer» C. in the both the cases |
86. |
Which one of the following statements is correct? |
A. | The underwriter assesses the risk |
B. | No policy can be issued without underwriter decision |
C. | Both (a) an (b) statements are correct |
D. | Both (a) and (b) statements are wrong |
Answer» C. Both (a) an (b) statements are correct |
87. |
Which one of the following statements is correct? |
A. | Underwriting is done only when there is a medical examination |
B. | Medical examination is necessary before a policy can be issued |
C. | Both (a) an (b) statements are correct |
D. | Both (a) and (b) statements are wrong |
Answer» D. Both (a) and (b) statements are wrong |
88. |
Which one of the following statements is correct? |
A. | Workingwomen are treated at par with men |
B. | Educated women are treated at par with men |
C. | Both (a) an (b) statements are correct |
D. | Both (a) and (b) statements are wrong |
Answer» C. Both (a) an (b) statements are correct |
89. |
Financial underwriting is done to evaluate ____ |
A. | the probability of the policy lapsing in future |
B. | the possibility of moral hazard |
C. | Both (a) an (b) statements are correct |
D. | Both (a) and (b) statements are wrong |
Answer» B. the possibility of moral hazard |
90. |
The net premium will be ______ |
A. | less than the risk premium |
B. | more than the risk premium |
C. | calculated by adding expenses to the risk premium |
D. | more than the pure premium |
Answer» A. less than the risk premium |
91. |
When interest rates fall, the tabular premium rates are likely to _______ |
A. | increase |
B. | decrease |
C. | remain the same |
D. | equal |
Answer» A. increase |
92. |
The reason for charging level premium is _______ |
A. | risk increases as age increases |
B. | it is convenient to the policyholders |
C. | it is convenient to the insurer |
D. | all the above reasons |
Answer» D. all the above reasons |
93. |
What is meant by a claim under an insurance policy? |
A. | Any demand made by the policy holder on the insurer |
B. | A demand to fulfill the policyholders obligations |
C. | A demand to fulfill the insurer's obligations |
D. | All the three above |
Answer» D. All the three above |
94. |
Which one of the following statement is correct? |
A. | A death claim within two years of commencement is treated as an early claim |
B. | A death claim within two years of revival is treated as an early claim |
C. | Both (a) and (b) statements are correct |
D. | Both (a) an (b) statements are wrong |
Answer» C. Both (a) and (b) statements are correct |
95. |
Which one of the following statement is correct? |
A. | Maturity proceeds are paid to the nominee, if the policyholder dies earlier |
B. | Maturity proceeds are paid to the heirs, if the policy holders dies earlier |
C. | Both the above statements are correct |
D. | Both the above statements are wrong |
Answer» B. Maturity proceeds are paid to the heirs, if the policy holders dies earlier |
96. |
Which one of the following statement is correct? |
A. | No claim is paid unless the original policy is produced |
B. | Claim can be paid even without the original policy, if it is lost |
C. | Both the above statements are correct |
D. | Both the above statements are wrong |
Answer» B. Claim can be paid even without the original policy, if it is lost |
97. |
Which one of the following statement is correct? |
A. | In the case of SSS policies, the grace period is one month |
B. | If the due date is 27th February the grace period ends on 26th March |
C. | Both (a) and (b) statements are correct |
D. | Both (a) and (b) statements are wrong |
Answer» D. Both (a) and (b) statements are wrong |
98. |
Which one of the following statement is correct? |
A. | If death occurs in grace period, the premium due is waived. |
B. | The date of payment of premium is the date on which the cheque is cleared |
C. | Both (a) and (b) statements are correct |
D. | Both (a) and (b) statements are wrong |
Answer» D. Both (a) and (b) statements are wrong |
99. |
Which one of the following statement is correct? |
A. | When a policy lapses, the policy holders loses everything |
B. | When a policy lapses, some benefits are protected |
C. | Both statements are Correct |
D. | Both the statements are wrong |
Answer» B. When a policy lapses, some benefits are protected |
100. |
Which one of the following statement is correct? |
A. | In group insurance, a single policy is issued covering many persons |
B. | A master policy covers servants of a master |
C. | Both the statements above are correct |
D. | Both statements above are wrong |
Answer» A. In group insurance, a single policy is issued covering many persons |
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