Risk Management MCQ Quiz - Multiple Choice Questions & Answers Page 8

71. A state law requires individuals suffering injury or loss from an automobile accident to be reimbursed by their own insurance companies. What type of insurance is this?

1. No-fault auto insurance
2. Public liability insurance
3. Automobile physical damage insurance
4. Automobile liability insurance

72. Which of following statement is correct 1) According to captive model an insurance company market its products almost exclusively through the distribution channels of its banking parent. 2) According to partnership model, the insurance company distributes its products partly, though not exclusively through a banking channel.

1. only 1
2. only 2
3. both 1 & 2
4. none of above

73. Which of the following is the advantage of reinsurance for insurer? 1. Insurer can share his risk with other insurance. 2. It reduces the situation of certainty by distribution of risks among other insurers

1. only 1
2. only 2
3. none
4. both 1 & 2

74. 1. Risk can be eliminated without an adverse effects on the goals of an individual or business probably should not be avoided. 2. self insurance is another way of mixing risk retention & risk transfer. Which of the above statement is false.

1. only 1
2. only 2
3. both 1 & 2
4. none

75. Costs for injury or death due to hazards at the work place are covered under ..................insurance

1. product liability
2. life
3. malpractice
4. public liability

76. The ratemaking function in a life insurance company is performed by ...............

1. production sales management
2. insurance department
3. actuarial department
4. underwriter

77. Which type of coverage pays for damages intentionally caused by another person, such as breaking a windshield in a parking lot?

1. Property damage liability coverage
2. Comprehensive coverage
3. Collision insurance
4. Product liability coverage

78. defective products is an example of which loss exposure

1. property loss exposure
2. human resource loss exposure
3. crime loss exposure
4. liability loss exposure

79. The law of large numbers can be applied more easily to ...............than speculative risk

1. Pure Risk
2. Objective Risk
3. Acceptable Risk
4. Subjective Risk

80. A lien can be placed on ones income and financial assets to satisfy a legal judgment. This results in ...............

1. pure risk
2. liability risk
3. dynamic risk
4. acceptable risk