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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