Top 80+ Solved Principles of Insurance MCQ Questions Answer
Q. Occupation is important for risk classification because of:
a. Income earned by individual
b. Tension, stress and worries given by workplace
c. damage caused by pollution at work place
d. both b and c
Q. A complete proposal form contains the information about
a. Moral hazard
b. Physical hazard
c. Personal history of proposer and identity of the property insurance
d. All of the above
Q. Valuation in life insurance means
a. The process of arriving at the profit of a life insurance company
b. The process of determining the net premium for a life insurance policy
c. The process of arriving at the bonus in a life insurance company
d. The process by which the value of all the existing policies is ascertained in a life insurance company.
Q. Endorsement can be used in a policy giving effect to
a. Renewal
b. Change in Premium
c. Change in subject matter of insurance
d. All of the above
Q. Fire Insurance is based on the principle of ?
a. Utmost good faith
b. Insurable interest
c. Indemnity
d. Co-operation
Q. Which is the consequential loss in the fire insurance?
a. loss of profit on account of fire
b. property damaged by matter used for extinguishing fire
c. loss due to collapse of walls at the time of fire.
d. none
Q. Fire insurance is a personal contract because
a. it is a contract of utmost good faith
b. it is a contract of insurable interest
c. the contract does not insure the safety of the property but only the insured from pecuniary loss due to fire
d. none
Q. Which of the statements is correct? Under a fire policy A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets.
a. Statement A. is correct
b. Statement is correct
c. Both are correct
d. Neither is correct
Q. Which of the following is an accidental loss by fire?
a. loss of profit on account of fire
b. loss on account of delay
c. Damage caused by a fire brigade in carrying out its fire fighting operation.
d. Loss of market
Q. The major law governing marine insurance in India is
a. English Marine Insurance Act, 1906
b. Marine Insurance Act, 1963
c. IRDA Act, 1999
d. General Insurance Nationalisation Act, 1972
Q. Can a marine policy be assigned?
a. Can be assigned before the loss
b. Can be assigned after the loss
c. cannot be assigned
d. both a and b
Q. Constructive total loss in marine insurance means
a. same as total loss
b. a partial loss
c. the loss caused is so huge that the cost of repairs would exceed the actual amount, so it is adjudged as a total loss
d. a loss which is not covered
Q. Group insurance is ideally suited for covering
a. Affluent persons in the society
b. Weaker sections of the society
c. Employer-employee groups
d. Both B. and C.
Q. Unemployment insurance is a component of
a. ESI Act
b. Social Security Act
c. Worker’s Compensation Act
d. None of the above
Q. Which is the right time for taking life insurance?
a. When you are about to get married
b. Soon after you have got married
c. Just when you are joined a new job
d. All the three ‘times’ are right