Deck 3: Insurance Fundamentals

Question 1

First private life insurance company was registered in India in……….

A)1999
B)2000
C)2002
D)1978

Answer 1

2000

Question 2

When did Government of India nationalized life insurance business.

A)1956
B)1978
C)1991
D)2002

Answer 2

1956

Question 3

…………….. is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy

A)Specific policy
B)Valued policy
C)Average policy
D)None of these

Answer 3

Average policy

Question 4

………… Clause generally inserted in all general insurance contract to discourage under insurance

A)Specific clause
B)General clause
C)Valuation clause
D)Average clause

Question 5

Who pays premium under social security group insurance?

A)Every member of the group
B)Government
C)LIC
D)None of the above

Question 6

…………..is concerned with the conversion of a firms asset and earning power against risk of accidental loss.

A)Risk retention
B)Risk management
C)Risk control
D)Risk identification

Question 7

If the market interest rate is higher, the cost of insurance…

A)Increases
B)Moderate
C)Decreases
D)No change

Question 8

As age increases risk on the life………..

A)Increases
B)Decreases
C)No change
D)None of the above

Question 9

Premium of a policy is calculated on the basis of……

A)Income of the insured
B)Agent's report
C)Risk associated with the policy
D)None of the above

Question 10

"Human life is an income generating asset". The statement is……

A)True
B)Partly true
C)False
D)Partly false

Question 11

Maximum period of a policy in case of insurance other than life insurance is…..

A)12 months
B)24 months
C)No limit
D)None of these

Question 12

The business of insurance is related to protection of…………

A)Status
B)Economic value of asset
C)Savings
D)Profit

Question 13

_________ is concerned with the conversion of a firm's asset and earning power against risks of accidental loss.

A)Risk retention.
B)Risk management.
C)Risk control.
D)Risk identification.

Question 14

________ involved those losses that occur even if there were no changes in the economic environment.

A)Dynamic risk.
B)Static risk.
C)Fundamental risk.
D)Particular risk.

Question 15

Fundamental risk is also termed as _________

A)Particular risk.
B)Speculative risk.
C)Group risk.
D)Pure risk.

Question 16

Unemployment, war, inflation, earthquakes etc., are the examples of ________

A)Pure risk.
B)Particular risk.
C)Personal risk.
D)Fundamental risk.

Question 17

Any risk involved a situation where there is a possibility of gain refers to ________

A)Liability risk.
B)Personal risk.
C)Pure risk.
D)Speculative risk.

Question 18

Direct or Consequential losses refer to _________

A)Dynamic risk.
B)Particular risk.
C)Property risk.
D)Pure risk.

Question 19

Spreading of risk otherwise termed as _________

A)Shifting of risk.
B)Acceptance of risk.
C)Reduction of risk.
D)Spreading of risk.