Deck 7: Reinsurance and Insurance Terminology

Question 1

__________ means insuring a risk with two or more insurers and the total sum insured also exceeds the actual value of the subject matter.

A)Reinsurance
B)General Insurance
C)Single insurance
D)Double insurance

Answer 1

Double insurance

Question 2

_______ involves proportionate sharing of the insurance among more than one insurer.

A)Reinsurance
B)Double Insurance
C)Co-insurance
D)None

Answer 2

Co-insurance

Question 3

________ means insuring again.

A)General insurance
B)Reinsurance
C)Coinsurance
D)Double insurance

Answer 3

Reinsurance

Question 4

The proportion of the risk which the direct insurer holds on his own account is called _________

A)Cession
B)Retention
C)Retrocession
D)Line

Question 5

Re-insurer is the insurer who grants a guarantee from the _______

A)Ceding insurer
B)Direct insurer
C)Underwriter
D)Line

Question 6

From the following which is not a non-proportional form of reinsurance?

A)Excess of loss method
B)Pools method of re insurance
C)Treaty method of reinsurance
D)Quata Method of reinsurance

Question 7

________ insurance means an alternative to purchasing insurance in a commercial market.

A)External
B)Internal
C)Double
D)Re insurance

Question 8

__________ Insurance is a contract to provide a measure of financial support to farmers in the event of a crop failure due to drought or flood.

A)Cattle
B)Crop
C)Burglary
D)Fire

Question 9

An unlooked mishap or an untoward event which is not expected or designed

A)Risk
B)Accident
C)Loss
D)None

Question 10

Crop insurance scheme came into existence in India in ________

A)1998
B)1999
C)1997
D)2000

Question 11

Public liability Insurance act established in _______

A)1990
B)1991
C)1992
D)1993

Question 12

From the following which is not a type of Public Liability Risk Insurance

A)Industrial Risk Insurance
B)Industrial All Risk Insurance
C)Non - Industrial Risk Insurance
D)Business premises Insurance

Question 13

_____________ Policy is granted only in respect of stocks of inventories of the insured under fire insurance business.

A)Declaration
B)Floating
C)Replacement
D)Valued

Question 14

__________ provides evidence of insurance to the police and Registration Authorities under Motor Vehicle Act.

A)Endorsement
B)Policy Form
C)Certificate of insurance
D)Cover note

Question 15

The main cause of loss or damage is _____________

A)Proximate cause
B)Indirect Loss
C)Consequential loss
D)All of these

Question 16

The cause of a possible loss, such as fire windstorm theft etc. is known as _____

A)Peril
B)Barratry
C)both
D)None