Deck 2: Insurance Policy and Risk Management: Part B

Question 1

Duty to minimize loss is incorporated in the policies through _________

A)warranties.
B)Conditions.
C)clauses.
D)declaratives

Answer 1

Conditions.

Question 2

_______ means those risks which involve a situation where there is a possibility of gain.

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

Answer 2

Speculative risk.

Question 3

A policy protecting a group of persons, usually employees of a firm generally called as ___________

A)Fire insurance policy.
B)Group insurance policy.
C)Marine insurance.
D)Automobile insurance.

Answer 3

Group insurance policy.

Question 4

When was IRD Act passed?

A)1972.
B)1999.
C)1989.
D)2000.

Question 5

Which of the following is the similarity between insurance and gambling?

A)The amount of loss to be paid is known before hand.
B)Promise to pay on the happening of an event.
C)Both the parties win on happening of an event.
D)Both are enforceable at law.

Question 6

A human life is an income-generating asset______________

A)true.
B)false.
C)partially true.
D)partially false.

Question 7

The premium actually paid by the policy holder depends upon___________

A)the wealth of the person to be insured.
B)the level of risk assessed by the insurer.
C)the tables of rates printed by the insurer.
D)agents report.

Question 8

Notification of Alteration in Risk is a condition _____________.

A)precedent to liability.
B)subsequent to liability.
C)precedent to the contract.
D)subsequent to the contract.

Question 9

As the age increases risk on the life _______.

A)Increases.
B)Decreases.
C)does not change.
D)Moderate.

Question 10

If the interest rates in the market are higher, then cost of insurance _________.

A)Increases.
B)moderate.
C)Decreases.
D)no change.

Question 11

One who shares the risk under an insurance policy or policies is known as __________.

A)Assurer.
B)Insurer.
C)Co-insurer.
D)Agent.

Question 12

The concept of bancassurance originated in ___________.

A)France.
B)U.S.A.
C)Engla

Question 13

Individuals define risk as____________.

A)deviation from some expected return.
B)a cost of investing.
C)a quantitative measure.
D)"losing money."