McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance) , Bachelor of Commerce in Banking (B.Com Banking) .
| 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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