Risk Management MCQ Quiz - Multiple Choice Questions & Answers

1. In ...............or ............... method a fixed share or quota of the risk is reinsured

1. Quota or fixed share treaty
2. excess of loss or quota
3. fixed share or surplus treaty
4. none of above

2. ...............happen when an insurance company has undertaken more risk burden on its shoulders than its bearing capacity. ................... is a device to reduce the risk

1. reinsurance, reinsurance
2. double insurance, reinsurance
3. double insurance , double insurance ,
4. reinsurance, double insurance

3. ...............refers to the cause of loss or the contingency that may cause a loss

1. Risk
2. Peril
3. Danger
4. Hazards

4. When a jewelry store locks its merchandise in a vault at the end of the day, it is practicing

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

5. Which risk-management technique does self-insurance satisfy?

1. Risk reduction
2. Risk assumption
3. Risk avoidance
4. Shifting risks

6. A broken window pane is evidence of a

1. robbery
2. larceny
3. burglary
4. theft

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

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

8. 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

9. 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

10. ...............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