Risk Management MCQ Multiple Choice Questions Answers - Page 2 for Practice
31. 1) Active risk retention means that the firm is aware of the loss exposure and plans to retain a part or all of it. 2) Passive retention however is the failure to identify a loss exposure, failure to act. Which of the above statement is not correct.
Correct Answer is: only 1
32. Which of the following are the principles of Risk Manangement. 1. Principle of risk identification 2. Principle of risk ananlysis 3. Principle of Risk assessment 4. Principle of Risk Control.
Correct Answer is: 1,2,3,4
33. Which type of insurance policy will protect a business from theft and forgery by its employees?
Correct Answer is: a fidelity bond
34. A method for reducing the cost of health care by offering the services of doctors and hospitals at discount rates or giving breaks in co-payments and deductibles is offered by
Correct Answer is: a preferred provider organization
35. Higher the percentage of ...............in GDP , lower the insurance penetration
Correct Answer is: agriculture
36. ...............contract means that only one party makes a legally enforceable promise
Correct Answer is: unilateral
37. Purchasing insurance is a technique used to
Correct Answer is: shift risk
38. Dr. Robins chose to stop practicing when malpractice insurance premiums became too high for him to afford. He is managing risk by .................. risk
Correct Answer is: avoiding
39. Collision insurance is a type of
Correct Answer is: automobile physical damage insurance
40. Bailment is an agreement between a person ...............who owns or lawfully possesses goods and another person ,............... who is given possession of the goods for a specific purpose
Correct Answer is: bailor, bailee
41. Upon the death of the insured, who receives the proceeds of the life insurance policy?
Correct Answer is: beneficiaries
42. ...............is a memorandum specifying some of the details of the property or liability policy to be issued by the company
Correct Answer is: binder
43. 1) One of the most important reason for considering bancassurance by bank is increased ROA. 2) Insurers operate through bansassurance, own and control relationships with customers.Which of the above two statement is not correct.
Correct Answer is: none of the above.
44. Unemployment can result from:
Correct Answer is: All of the above
45. Most firms shift their risks by
Correct Answer is: buying an insurance policy
46. Which of the following is the challenge for bancassurance in India
Correct Answer is: all of above
47. The consent will be free when it is not caused by
Correct Answer is: all of above
48. Which type of insurance covers damage or injury caused by a vehicle with no liability insurance coverage?
Correct Answer is: uninsured motorists insurance
49. A contract of ............... means the insured must accept the entire contract, with all of its items and conditions
Correct Answer is: adhesion
50. ...............helps lower the cost of insurance as well as increase its availability
Correct Answer is: deductible decisions
51. The insurer according to which of the following principle, becomes entitled to all the rights of insured subject matter after payment because he has to pay the actual loss of the property
Correct Answer is: subrogation is substitution
52. ............... is a contract between two or more insurance companies by which a portion of risk of loss is transferred to another insurance companies
Correct Answer is: reinsurance
53. ...............is the distribution of insurance products through the banks distribution channels
Correct Answer is: reinsurance
54. ...............are used as a valuable tool/aid to rate making & underwriting
Correct Answer is: engineering services
55. Under which method, both the parties are found into a contract for any specific risk
Correct Answer is: facultative
56. ...............method is the oldest method of reinsurance and there is...............on reinsurance
Correct Answer is: Facultative, no restrictions
57. Insurance Ombudsman is a Quasi judicial body established for speedy settlement of dispute in ............... ,............... and ............... manner
Correct Answer is: fair, impartial , judicial
58. Extended coverage endorsements normally do not cover damage caused by
Correct Answer is: nuclear radiation
59. A type of insurance that has been around since the ancient Greeks and Romans is ...................insurance.
Correct Answer is: marine
60. Which of the following is not the type of insurance:
Correct Answer is: Public Insurance, Social Insurance, Motor insurance, Marine insurance
