Top 150+ Solved Risk Management and Insurance MCQ Questions Answer
Q. The person whose risk is insured a is called ____________
a. Insured
b. Assured
c. Indemnity
d. Both a and b
Q. The person who agrees to compensate the loss arisingfrom the risk is called the ______
a. insurer
b. assurer
c. underwriter
d. all the above
Q. Risk insured against death is a contract of _________
a. assurance
b. agreement
c. indemnity
d. disagreement
Q. ________ is a document which provides evidence of the contract of insurance.
a. Proposal form
b. Policy form
c. Cover note
d. Certificate of Insurance
Q. The proportion of the risk which the direct insurer holds on his own account refers to_______
a. Line
b. Retention
c. Retrocession
d. Ceding insurer
Q. Reinsurance also termed as ______
a. insurance of insurance
b. reinsurance of reinsurance
c. double insurance
d. reinsurance
Q. When the same risk and subject matter is insured with more than one insurer is called as _______
a. Double Insurance
b. Over Insurance
c. Reinsurance
d. Non-Proportional Reinsurance
Q. When the amount for which a subject matter is insured is more than its actual value it iscalled _____
a. Double Insurance
b. Over Insurance
c. Reinsurance
d. Non-Proportional Reinsurance
Q. The business of insurance is related to protection of ________
a. status
b. savings
c. economic value of assets
d. profits
Q. In insurance contracts, the insurance company is also known as ________
a. Insured
b. Beneficiary
c. Insurer
d. policy holder
Q. For introduction of a group scheme, we need a ______
a. Large group of persons
b. Small group of persons
c. Homogeneous group
d. Insured group
Q. When choosing group life insurance, most groups buy _______
a. whole life insurance
b. one year renewable group term assurance
c. variable life insurance
d. universal life insurance
Q. On the death of the bread-earner, two losses occur in the family-one is loss of human lifeand the other _____
a. Loss of insurance
b. Loss of investment
c. Loss of bank deposits
d. Earning power of family