Risk Management and Insurance MCQs set 3

51. Insurance is a risk management technique involving____________

A. risk retention.

B. risk avoidance.

C. loss control.

D. risk transfer.

Answer: D

52. Risk management follows a systematic process which involves

_______ steps.
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A. two.
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B. three.
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C. four.
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D. five.
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Answer: D M
53. Organizations are mainly concerned with managing
A. pure risks.

B. speculative risks.

C. personal risks.

D. other risks

Answer: A

54. The first step in risk management process is

A. risk avoidance.

B. risk identification.

C. insurance.

D. risk evaluation.

Answer: B

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 Risk Management and Insurance MCQs set 3

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

56. Main emphasis of risk management is on o

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A. risk retention.
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B. reduction of cost of handling risk.

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C. risk transfer.
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D. insurance.

Answer: B
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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

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

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 Risk Management and Insurance MCQs set 3

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

60. Insurance cover _______

A. protects assets
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B. prevents loss
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C. reduces the impact of loss
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D. insurances immorality
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Answer: C c
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61. The person whose risk is insured a is called ____________
A. Insured

B. Assured

C. Indemnity

D. Both a and b

Answer: D

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

63. Risk insured against death is a contract of _________

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 Risk Management and Insurance MCQs set 3

A. assurance

B. agreement

C. indemnity

D. disagreement

Answer: A

64. ________ is a document which provides evidence of the contract of

insurance.
A. Proposal form
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B. Policy form
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C. Cover note
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a
D. Certificate of Insurance

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Answer: B
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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

66. A Re-insurance of re-insurance refers to _____

A. Line

B. Retention

C. Retrocession

D. Cession

Answer: C

67. Reinsurance also termed as ______

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 Risk Management and Insurance MCQs set 3

A. insurance of insurance

B. reinsurance of reinsurance

C. double insurance

D. reinsurance

Answer: A

68. When the same risk and subject matter is insured with more than one
insurer is called as _______
A. Double Insurance
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B. Over Insurance
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C. Reinsurance
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a
D. Non-Proportional Reinsurance

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Answer: A
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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

70. The business of insurance is related to protection of ________

A. status

B. savings

C. economic value of assets

D. profits

Answer: C

71. Who are the beneficiaries of Insurance?

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 Risk Management and Insurance MCQs set 3

A. Society

B. Individual

C. Business

D. All of these

Answer: D

72. In insurance contracts, the insurance company is also known as

________
A. Insured
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B. Beneficiary
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C. Insurer
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D. policy holder

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Answer: C
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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

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

75. On the death of the bread-earner, two losses occur in the family-one is
loss of human life
and the other _____

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 Risk Management and Insurance MCQs set 3

A. Loss of insurance

B. Loss of investment

C. Loss of bank deposits

D. Earning power of family

Answer: D

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a
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