Top 80+ Solved Principles of Insurance MCQ Questions Answer
Q. Largest Life Insurance Company in India is:
a. The New India Assurance Company Limited
b. Life Insurance Corporation of India (LIC)
c. United India Insurance Company Limited
d. National Insurance Company Limited
Q. The term risk may be defined as:
a. The possibility of adverse results flowing from any occurrence.
b. The possibility of an outcome being different from the expected one.
c. Both a and b
d. None of the above
Q. Risk of premature death is a
a. Financial risk
b. Personal risk
c. Dynamic risk
d. Subjective risk
Q. Insurance is a risk management technique involving:
a. Risk retention
b. Risk avoidance
c. Loss control
d. Risk transfer
Q. Organisations are mainly concerned with managing
a. Pure risks
b. Speculative risks
c. Personal risks
d. None of the above
Q. The first step in risk management process is
a. Risk avoidance
b. Risk identification
c. Insurance
d. Risk evaluation
Q. Main emphasis of risk management is on ___________.
a. Risk retention
b. Reduction of cost of handling risk
c. Risk transfer
d. all
Q. Cost of loss control is
a. cost of reducing frequency and severity of loss
b. cost of paying workers compensation
c. cost of self-insurance
d. all
Q. Following are the risk management methods:
a. Insurance
b. Hedging
c. Derivatives
d. All of the above
Q. Which of the following types of risks best meets the requirements for being insurable byprivate insurers?
a. Market risks
b. Property risks
c. Financial risks
d. Political risks
Q. All of the following are financial risks which may be faced by business organizations EXCEPT
a. Interest rate risk.
b. Commodity price risk.
c. Product liability risk.
d. Currency exchange rate risk.
Q. Risk management follows a systematic process which involves……….steps.
a. Two
b. Three
c. Four
d. Five
Q. Risk management information system is not useful in one of the following
a. Reporting
b. Hedging
c. Claim adjustment process review
d. none
Q. Event of high frequency and low severity fall in the self-retention category
a. True
b. False
c. none
d. all
Q. When as event is stated to be possible, it has a probability between
a. Zero and one
b. Zero or one
c. None of these
d. Both of the above