Top 80+ Solved Principles of Insurance MCQ Questions Answer
Q. The general insurance business in India was nationalized in the year.
a. 1976
b. 1956
c. 1983
d. 1972
Q. The main role of an underwriter in a non-life insurance company is normally to
a. assess the acceptability of particular risks
b. certify a loss when claims are submitted.
c. design the structure of the products to be offered.
d. negotiate with the industry regulator.
Q. Akshat is a relatively cautious person. In insurance terms, this will normally increase thelikelihood that he will
a. be considered an above average insurance risk.
b. be considered a below average insurance risk.
c. require insurance cover.
d. require reinsurance cover.
Q. Which of the statements is correct? A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets.
a. Statement A.
b. Statement
c. Both the statements.
d. Neither of the statements
Q. Transfer of rights and remedies of the insured to the insurer after indemnity has beeneffected is called __________.
a. Insurable interest.
b. Subrogation
c. Proximate clause.
d. Money back policy.
Q. Which one of the following comes under miscellaneous insurance?
a. Marine Insurance
b. Motor Insurance
c. Fire Insurance
d. Group Insurance
Q. __________ policy matures on the assured death or on his attainment of a particular age whichever occurs earlier.
a. Endowment.
b. Money back.
c. Joint life
d. Single premium.
Q. On the death of the bread-earner, two losses occur in the family-one is loss of human life and the other
a. Earning power of family
b. Loss of insurance
c. Loss of investments
d. Loss of bank deposits
Q. The principle of indemnity is applicable to _______ only.
a. Life Insurance
b. Personal accident insurance
c. Proximate Cause
d. Property insurance
Q. Insurance is based on the principle of _______.
a. co-operation.
b. Democracy
c. Equality
d. welfare
Q. ______ are those terms, which are written on the policy.
a. Express Warranties
b. Implied Warranties
c. Memorandum Warranties
d. Valuation Clause
Q. Which of the following statements is true: Under a fire policy
a. Insurance is a transfer of risk mechanism.
b. Insurance gives physical protection to the assets.
c. Statement A
d. Statement B
Q. Which of the following statements is correct?
a. One of the methods of risk retention is by way of voluntary excess or deductible available under the policy.
b. Another method of retention of risk is to absorb small losses as normal operating expenses of business.
c. Statement A
d. Statement B
Q. Which of the following types of loss exposures are best met by the use of avoidance?
a. low-frequency, low-severity
b. low-frequency, high-severity
c. high-frequency, low-severity
d. high-frequency, high-severity
Q. Which of the following statements is correct?
a. People do not see the need for life insurance as top priority.
b. People hesitate to buy life insurance because they prefer to enjoy the present.
c. Both the statements are correct.
d. Both the statements are wrong.