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McqMate
Chapters
1. |
Which of the following is the similarity between insurance and gambling: |
A. | The amount of loss to be paid is known before hand. |
B. | Promise to pay on the happening of the event |
C. | Both the parties win on happening of an event. |
D. | Both are enforceable at law. |
Answer» A. The amount of loss to be paid is known before hand. |
2. |
The business of insurance is related to protection of: |
A. | savings |
B. | status |
C. | profits |
D. | economic value of assets |
Answer» D. economic value of assets |
3. |
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 |
4. |
Insurance covers the risk of the most certain event - |
A. | Death of a person |
B. | protection of the childhood |
C. | protection of old age |
D. | all of the above |
Answer» B. protection of the childhood |
5. |
Insurance cover |
A. | Protects assets |
B. | prevents loss |
C. | reduces the impact of loss |
D. | insures immortality |
Answer» C. reduces the impact of loss |
6. |
The company doing insurance business is called: |
A. | mutual funds |
B. | non-banking firm |
C. | banking company |
D. | an insurance company |
Answer» D. an insurance company |
7. |
All of the following are disadvantages of using insurance EXCEPT |
A. | There is an opportunity cost because premiums must be paid in advance. |
B. | Considerable time and effort must be spent selecting and negotiating coverages. |
C. | It results in considerable fluctuations in earnings after a loss occurs. |
D. | Attitudes toward loss control may become lax. |
Answer» C. It results in considerable fluctuations in earnings after a loss occurs. |
8. |
All of the following can be classified as casualty insurance EXCEPT |
A. | Marine insurance. |
B. | General liability insurance. |
C. | Workers compensation insurance. |
D. | Burglary and theft insurance. |
Answer» A. Marine insurance. |
9. |
Insurance eliminates or decreases the uncertainty associated with occurrence of an event |
A. | Correct |
B. | Wrong |
C. | Partially correct C. |
D. | Totally misleading |
Answer» C. Partially correct C. |
10. |
The insurance plays a role in the economic development of the country in following ways: |
A. | Release capital for new investments. |
B. | The job potential increases |
C. | Money collected is invested in infrastructure |
D. | All of the above |
Answer» D. All of the above |
11. |
Insurance brokers are governed by |
A. | Sale of Goods Act |
B. | Agency Law |
C. | IRDA Act. 1999 |
D. | Mercantile Law |
Answer» C. IRDA Act. 1999 |
12. |
A reinsurance of insurance refers to ________. |
A. | line. |
B. | retention. |
C. | retrocession. |
D. | cession. |
Answer» C. retrocession. |
13. |
IRDA Act. 1999 defines insurance intermediary as one including also |
A. | Insurance broker |
B. | UTI Agent |
C. | Sarpanch |
D. | Medical Examiner |
Answer» A. Insurance broker |
14. |
Insurance reduces the extent of financial loss connected with uncertain events |
A. | True |
B. | False |
C. | To the extent of insurance cover |
D. | Does not reduce the loss at all |
Answer» C. To the extent of insurance cover |
15. |
The business of insurance is related to protection of |
A. | Savings |
B. | Status |
C. | Profits |
D. | Economic value of assets |
Answer» D. Economic value of assets |
16. |
Which of the following is the similarity between insurance and gambling? |
A. | The amount of loss to be paid is known beforehand |
B. | Promise to pay on the happening of an event |
C. | Both the parties win on happening of an event |
D. | Both are enforceable at law |
Answer» A. The amount of loss to be paid is known beforehand |
17. |
What is underwriting in Insurance ? |
A. | Process of investing the premiums which insurance provider collect from insured parties. |
B. | A claim arises on the occurrence of a specified event |
C. | Process by which insurers select the risks to insure and decide how much in premiums to charge for |
D. | The ratio of losses and expenses to premium |
Answer» C. Process by which insurers select the risks to insure and decide how much in premiums to charge for |
18. |
Insurance Sector in India is regulated by IRDA. What is full name of IRDA? |
A. | Insurance Regulating and Development Agency |
B. | Insurance Rules and Development Authority |
C. | Insurance Rules and Deployment Authority |
D. | Insurance Regulatory and Development Authority |
Answer» D. Insurance Regulatory and Development Authority |
19. |
When was IRDA Act passed? |
A. | 1972 |
B. | 1999 |
C. | 1989 |
D. | 2000 |
Answer» A. 1972 |
20. |
Which of the following is the main objective of IRDA: |
A. | To take care of the policy holder interest |
B. | To open the insurance sector for private sectors |
C. | To supervise the activities of intermediaries |
D. | All of above |
Answer» A. To take care of the policy holder interest |
21. |
The general insurance business in India was nationalized in the year. |
A. | 1976 |
B. | 1956 |
C. | 1983 |
D. | 1972 |
Answer» D. 1972 |
22. |
The main role of an underwriter in a non-life insurance company is normally to |
A. | assess the acceptability of particular risks |
B. | certify a loss when claims are submitted. |
C. | design the structure of the products to be offered. |
D. | negotiate with the industry regulator. |
Answer» A. assess the acceptability of particular risks |
23. |
Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will |
A. | be considered an above average insurance risk. |
B. | be considered a below average insurance risk. |
C. | require insurance cover. |
D. | require reinsurance cover. |
Answer» C. require insurance cover. |
24. |
Which of the statements is correct? A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets. |
A. | Statement A. |
B. | Statement B. |
C. | Both the statements. |
D. | Neither of the statements |
Answer» A. Statement A. |
25. |
Transfer of rights and remedies of the insured to the insurer after indemnity has been effected is called __________. |
A. | Insurable interest. |
B. | Subrogation |
C. | Proximate clause. |
D. | Money back policy. |
Answer» B. Subrogation |
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