Risk Management MCQ Multiple Choice Questions Answers for Practice
1. The general insurance corporation is holding company, which has ...............subsidiary companies
Correct Answer is: 4
2. LIC (Mauritius) ltd. Was set in ...............
Correct Answer is: 2001
3. The idea of insurance ombudsman was mooted in the year
Correct Answer is: 1938
4. Insurance Ombudsman is open to all individuals whose claim amount is less than
Correct Answer is: 20 lakhs
5. 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
6. 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
7. Which type of insurance policy will protect a business from theft and forgery by its employees?
Correct Answer is: a fidelity bond
8. 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
9. Higher the percentage of ...............in GDP , lower the insurance penetration
Correct Answer is: agriculture
10. ...............contract means that only one party makes a legally enforceable promise
Correct Answer is: unilateral
11. Purchasing insurance is a technique used to
Correct Answer is: shift risk
12. 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
13. Collision insurance is a type of
Correct Answer is: automobile physical damage insurance
14. 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
15. Upon the death of the insured, who receives the proceeds of the life insurance policy?
Correct Answer is: beneficiaries
16. ...............is a memorandum specifying some of the details of the property or liability policy to be issued by the company
Correct Answer is: binder
17. 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.
18. Unemployment can result from:
Correct Answer is: All of the above
19. Most firms shift their risks by
Correct Answer is: buying an insurance policy
20. Which of the following is the challenge for bancassurance in India
Correct Answer is: all of above
21. The consent will be free when it is not caused by
Correct Answer is: all of above
22. Which type of insurance covers damage or injury caused by a vehicle with no liability insurance coverage?
Correct Answer is: uninsured motorists insurance
23. A contract of ............... means the insured must accept the entire contract, with all of its items and conditions
Correct Answer is: adhesion
24. ...............helps lower the cost of insurance as well as increase its availability
Correct Answer is: deductible decisions
25. 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
26. ............... 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
27. ...............is the distribution of insurance products through the banks distribution channels
Correct Answer is: reinsurance
28. ...............are used as a valuable tool/aid to rate making & underwriting
Correct Answer is: engineering services
29. Under which method, both the parties are found into a contract for any specific risk
Correct Answer is: facultative
30. ...............method is the oldest method of reinsurance and there is...............on reinsurance
Embark on an insightful journey through the realm of Risk Management with our comprehensive collection of multiple-choice questions and answers. Whether you're a risk management professional seeking to enhance your skills, a student studying risk management concepts, or a business owner looking to mitigate potential threats, our repository offers invaluable insights. Explore topics such as risk identification, risk assessment, risk mitigation strategies, risk monitoring, and risk communication. Each multiple-choice question is meticulously crafted to challenge your understanding and stimulate critical thinking about the intricacies of managing risks effectively. From understanding different types of risks to mastering risk assessment techniques and implementing risk control measures, our MCQs provide a comprehensive exploration of all facets of Risk Management. Start exploring today to deepen your knowledge and excel in navigating uncertainties in various domains!
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Multiple Choice Questions and Answers on Risk Management
Risk Management Multiple Choice Questions and Answers
