Risk Management Multiple Choice Questions and Answers

11. What type of life insurance policy would you recommend for a young couple, with no children, that would provide the most protection for the smallest premium?

1. Term
2. Single-payment life
3. Whole life
4. Endowment

12. ...............is an essential part of the bailor-baliee relationship

1. The delivery of goods
2. The utmost good faith
3. The duty of full disclosure
4. All of above

13. According to ...............model, an insurance company markets its products almost exclusive through the distribution channel of its banking parents

1. the partnership model
2. the joint venture model
3. the captive model
4. none of above

14. which of the following is the main objective of IRDA

1. To take care of the policy holder interest
2. To open the insurance sector for private sectors
3. to supervise the activities of intermediaries
4. all of above

15. When a firm buys insurance to cover losses caused by riots, the firm is

1. transferring
2. using risk
3. avoiding risk
4. assuming risk

16. A physical hazard is a condition stemming from the material characteristics of an object

1. True Statement
2. False Statement

17. Risk management is synonymous with Insurance mangement

1. True Statement
2. False Statement

18. ACV stands for actual cash value

1. True Statement
2. False Statement

19. The first insurance was established in Anthens

1. True Statement
2. False Statement

20. A risk manager can ignore those pure risk that are not insurable

1. True Statement
2. False Statement