Risk Management MCQ Multiple Choice Questions Answers - Page 3 for Practice
61. Indemnity also means ...............according to the Collins Thesaurus
Correct Answer is: Guarantee, security, compensation, protection
62. Which type of insurance protects the policyholder against loss or damage to a ship or its cargo on the high seas?
Correct Answer is: marine
63. ...............is a corollary of the indemnity principle. It is ...............concept that legally differentiates insurance from gambling
Correct Answer is: subrogation, indemnity
64. according to ...............principle , life insurance can be affected on the lives of third parties provided the proposer has insurable interest in the third party
Correct Answer is: insurable interest in others life
65. The doctrine of subrogation is the supplementary principle of ...............
Correct Answer is: Bailment
66. Which statement is not true about a mutual insurance company?
Correct Answer is: It has stockholders and operates to earn a profit
67. ...............insurance is the one where the loss is not due to physical damage but the result of dishonesty of employees as a result of physical damage
Correct Answer is: Pecuniary
68. Which one of the following is not a condition for an insurable loss?
Correct Answer is: Losses must result from an intentional action by the insured person
69. The ...............principle states that the business and individual should insure potentially serious losses before relatively minor losses
Correct Answer is: large loss
70. Life insurance and general insurance are divided on the basis of
Correct Answer is: business point of view
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?
Correct Answer is: No-fault auto 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.
Correct Answer is: both 1 & 2
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
Correct Answer is: only 1
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.
Correct Answer is: only 1
75. Costs for injury or death due to hazards at the work place are covered under ..................insurance
Correct Answer is: public liability
76. The ratemaking function in a life insurance company is performed by ...............
Correct Answer is: actuarial department
77. Which type of coverage pays for damages intentionally caused by another person, such as breaking a windshield in a parking lot?
Correct Answer is: Comprehensive coverage
78. defective products is an example of which loss exposure
Correct Answer is: liability loss exposure
79. The law of large numbers can be applied more easily to ...............than speculative risk
Correct Answer is: Pure Risk
80. A lien can be placed on ones income and financial assets to satisfy a legal judgment. This results in ...............
