Deck 9: Insurance Terminology and Risk Management

Question 1

________ means a premium which remains unchanged through out the life of a policy.

A)Avg. premium
B)Gross premium
C)Total premium
D)Level premium

Answer 1

Level premium

Question 2

An exceptionally large risk is known as ________

A)Great risk
B)Jumbo risk
C)Giant risk
D)None

Answer 2

Jumbo risk

Question 3

A person who gains or benefits as per a contract is known as ______

A)Beneficiary
B)Annuitant
C)Assurer
D)None

Answer 3

Beneficiary

Question 4

Gross premium means Net premium plus ________

A)Profit
B)Loss
C)Expense
D)Expense loading

Question 5

Bronson Company manufactures tools that it sells to wholesalers. Bronson is concerned that it may be unable to collect money the company is owed by the wholesalers. To address this risk, Bronson Company could purchase

A)a fidelity bond.
B)general liability insurance.
C)allied lines insurance.
D)credit insurance.

Question 6

………….of India offers a range of credit risk insurance covers to exporters against loss in export of goods and services.

A)RBI
B)LIC
C)ECGC
D)NAIS

Question 7

In India ……….controls and regulate the rates, advantages , terms and conditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation.

A)IRDA
B)TAC
C)GIC
D)LIC

Question 8

TAC stands for

A)Trade Advisory Corporation
B)Trade Advisory Committee
C)Tariff Advisory Corporation
D)Tariff Advisory Committee

Question 9

……..is pricing of insurance products driven by market forces

A)tariffing
B)de-tariffing
C)equilibrium pricing
D)fixed pricing

Question 10

………….is an amount in excess of the value of insurers assets over the amount of liabilities.This amount is prescribed by IRDA.

A)profit
B)goodwill
C)margin
D)solvency margin.

Question 11

…………are those where a part of the premium is charged for the risk cover and the rest is invested in selected mutual funds as per the choice of the investor.

A)mutual fund insurance
B)unit-linked insurance
C)double insurance
D)partial insurance