Risk Management Multiple Choice Questions and Answers

61. Choosing not to ride in a car is an example of

1. shifting risks
2. risk reduction
3. risk avoidance
4. risk assumption

62. A consumer disputes redressal forum to be known as the ...............to be established by the ...............with the prior approval of the central government in each district of the state

1. state consumer protection , state government
2. District forum, district government
3. central council, local government
4. district forum, state government

63. Insurance that provides protection for a stated period of time is defined as ..................insurance

1. straight life
2. single-payment
3. term
4. limited-payment

64. ...............risk is defined as the relative variation of actual loss from expected loss

1. Subjective risk
2. Pure loss
3. Objective risk
4. Expected risk

65. 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

66. ...............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

67. 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

68. 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

69. 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

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

1. True Statement
2. False Statement