McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
Occupation is important for risk classification because of: |
| A. | Income earned by individual |
| B. | Tension, stress and worries given by workplace |
| C. | damage caused by pollution at work place |
| D. | both b and c |
| Answer» D. both b and c | |
| 2. |
A complete proposal form contains the information about |
| A. | Moral hazard |
| B. | Physical hazard |
| C. | Personal history of proposer and identity of the property insurance |
| D. | All of the above |
| Answer» B. Physical hazard | |
| 3. |
Valuation in life insurance means |
| A. | The process of arriving at the profit of a life insurance company |
| B. | The process of determining the net premium for a life insurance policy |
| C. | The process of arriving at the bonus in a life insurance company |
| D. | The process by which the value of all the existing policies is ascertained in a life insurance company. |
| Answer» D. The process by which the value of all the existing policies is ascertained in a life insurance company. | |
| 4. |
Endorsement can be used in a policy giving effect to |
| A. | Renewal |
| B. | Change in Premium |
| C. | Change in subject matter of insurance |
| D. | All of the above |
| Answer» D. All of the above | |
| 5. |
Fire Insurance is based on the principle of ? |
| A. | Utmost good faith |
| B. | Insurable interest |
| C. | Indemnity |
| D. | Co-operation |
| Answer» C. Indemnity | |
| 6. |
Which is the consequential loss in the fire insurance? |
| A. | loss of profit on account of fire |
| B. | property damaged by matter used for extinguishing fire |
| C. | loss due to collapse of walls at the time of fire. |
| D. | none |
| Answer» A. loss of profit on account of fire | |
| 7. |
Fire insurance is a personal contract because |
| A. | it is a contract of utmost good faith |
| B. | it is a contract of insurable interest |
| C. | the contract does not insure the safety of the property but only the insured from pecuniary loss due to fire |
| D. | none |
| Answer» C. the contract does not insure the safety of the property but only the insured from pecuniary loss due to fire | |
| 8. |
Which of the statements is correct? Under a fire policy A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets. |
| A. | Statement A. is correct |
| B. | Statement B. is correct |
| C. | Both are correct |
| D. | Neither is correct |
| Answer» B. Statement B. is correct | |
| 9. |
Which of the following is an accidental loss by fire? |
| A. | loss of profit on account of fire |
| B. | loss on account of delay |
| C. | Damage caused by a fire brigade in carrying out its fire fighting operation. |
| D. | Loss of market |
| Answer» B. loss on account of delay | |
| 10. |
The major law governing marine insurance in India is |
| A. | English Marine Insurance Act, 1906 |
| B. | Marine Insurance Act, 1963 |
| C. | IRDA Act, 1999 |
| D. | General Insurance Nationalisation Act, 1972 |
| Answer» C. IRDA Act, 1999 | |
| 11. |
Can a marine policy be assigned? |
| A. | Can be assigned before the loss |
| B. | Can be assigned after the loss |
| C. | cannot be assigned |
| D. | both a and b |
| Answer» C. cannot be assigned | |
| 12. |
Constructive total loss in marine insurance means |
| A. | same as total loss |
| B. | a partial loss |
| C. | the loss caused is so huge that the cost of repairs would exceed the actual amount, so it is adjudged as a total loss |
| D. | a loss which is not covered |
| Answer» A. same as total loss | |
| 13. |
Group insurance is ideally suited for covering |
| A. | Affluent persons in the society |
| B. | Weaker sections of the society |
| C. | Employer-employee groups |
| D. | Both B. and C. |
| Answer» D. Both B. and C. | |
| 14. |
Unemployment insurance is a component of |
| A. | ESI Act |
| B. | Social Security Act |
| C. | Worker’s Compensation Act |
| D. | None of the above |
| Answer» B. Social Security Act | |
| 15. |
Which is the right time for taking life insurance? |
| A. | When you are about to get married |
| B. | Soon after you have got married |
| C. | Just when you are joined a new job |
| D. | All the three ‘times’ are right |
| Answer» D. All the three ‘times’ are right | |
| 16. |
Which type of insurance protects the policyholder against loss or damage to a ship or its cargo on the high seas? |
| A. | Hazards |
| B. | Inland |
| C. | Transportation |
| D. | Mariney |
| Answer» D. Mariney | |
| 17. |
Which of the following is not covered under General Insurance? |
| A. | Theft insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | Fire insurance |
| Answer» C. Life insurance | |
| 18. |
Which principle suggests that insured should try to minimize the loss of his property even if it is insured? |
| A. | Principle of indemnity |
| B. | Principle of Mitigation |
| C. | Principle of Proximate Cause |
| D. | Principle of contribution |
| Answer» B. Principle of Mitigation | |
| 19. |
Group insurance is ideally suited for covering |
| A. | Affluent persons in the society |
| B. | Weaker sections of the society |
| C. | Employer-employee groups |
| D. | Both B. and C. |
| Answer» B. Weaker sections of the society | |
| 20. |
Fire insurance can be taken in respect of __________ |
| A. | movable property only |
| B. | immovable property only |
| C. | both movable and immovable properties |
| D. | persons only |
| Answer» C. both movable and immovable properties | |
| 21. |
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. | |
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