ISHAL SHUKAT ALI (2172079)

1- When an employee stole goods from other company office is known as;

A. Theft
B. Fidelity Guarantee
C. Burglary
D. rubbery
E. Mysterious disappearance

2- The founder of insurance in the world is;

A. Mr. Lloyds
B. Mr. Smith
C. Mr. Joseph Lobo
D. Mr. Edmund Vellozo

3- When one leading insurer join hand with other insurer. The other insurer
known as;

A. Re-insurer
B. Co-insurer
C. Insured
D. Co-insured
4- Definite loss means

loss takes place at a known time, in a known place, and from a known
cause
B. Insurance operates through pooling resources
C. Event that constitutes the trigger of a claim
 D. which may lead to different premium rates.
5- Utmost good faith means;

A. insured is bound to disclose all material facts

B. insurer is bound to disclosed all material facts
C. honest is always on the shoulders of insured and insurer
D. Self-insurance 
6- Mitigation means:
A- Minimize insurance expenditures
B- Make certain that uninsured losses do not occur
C-Minimize the adverse effects of losses and uncertainty connected with
pure risks
D. owner must attempt to keep loss to a minimum, as if the asset was
not insured.
E. C & D
F. A,C & D
7-Insurance policy cover the following loss’
A. A loss develop with the passage of time
B. A mysterious disappearance loss
C. Accidental loss
D. Fraudulent loss

8-An insurable particular risk is one which

A. is personal in its cause and effect.

B. is not measurable in monetary terms.
C. may lead to either a loss or a gain.
D. affects many people at once.

10- As a risk transfer mechanism, insurance provides the insured with peace of
mind and

A. elimination of all loss.

B. financial profit.
C. financial protection.
D. protection from prosecution.

11-When a homeowner insures his property, what is being transferred from the
homeowner to the insurer?

A. The certainty of loss.

B. Insurable interest.
C. Utmost good faith.
D. The risk of loss

12- Paul's camcorder is subject to dual insurance. What does this mean?

A. He must bear the cost for a proportion of any claim.

B. His insurer has obtained reinsurance.
C. The camcorder is covered under more than one insurance policy
D. The risk is shared between two insurers under one insurance policy.

13- What type of risk is a widespread natural disaster?

A. A fundamental risk.
B. A particular risk.
C. A pure risk.
D. A speculative risk.
14- A common pool for a proprietary insurer is best described as a means by
which
 A. the losses of the many are met by the contributions of the few.
B. the losses of the few are' met by the contributions of the many.
C. in the event that an insured risk does not occur, premium paid are
Distributed to a number of Policyholders.
D. in the event that an insured risk does occur, a number of
Policyholders are surcharged.
15- Who cedes business to a reinsurer?
A. The agent.
B. The assessor.
C. The insurer.
D. The insured.

16- The principle of utmost good faith, when must this be disclosed to the insurer?
A. During the proposal stage.
B. Only if a specific question is asked.
C. Immediately after the acceptance terms are received.
D. Immediately after the premium is paid.
17- Gas pipes are fractured during a hurricane, resulting in an explosion which
damages the insured’s property. Which insurance principle enables the insured
to obtained indemnity for' the damage caused by the explosion if the property is
insured against hurricane but NOT against explosion?

A. Contribution.
B. Indemnity.

C. Proximate cause.
C. Subrogation.

18- Sean has insured the plate glass window of his shop against loss or damage
from any cause. A fire breaks out in a neighboring shop and a mob gathers. The
mob riots, the police are called and Sean's plate glass window is broken. What is
the proximate cause of this damage?
A. The fire
 B. The mob.
C. The police.
D. The riot.

19- An insurer has paid for repairs to the insured's building following
damage caused by a contractor working on an adjoining property. From
whom; If anyone can the insurer normally subrogate the repair costs?

A. The owner of the adjoining property,

B. The contractor who caused the damage.
C. The insurer which insures the contents of the building.
D. The insurer cannot seek recovery.
20- Whilst abroad on holiday, Joe loses his watch which is covered under his
travel insurance policy. His travel Insurer discovers the watch is also covered as an
unspecified item under the personal effects section of Joe's household contents
insurance policy and asks his household insurer to bear a proportion of the claim. What
is this practice known as?
A. Coinsurance.
B. Contribution.
C. Disclosure.
E. Subrogation.