Top 150+ Solved Risk Management and Insurance MCQ Questions Answer
Q. Consideration on the part of the life insured in respect of a life insurance contract is _______
a. a promise to take a new policy
b. the insured promise to pay the premium under the policy
c. the payment made towards premium by the insured
d. proposal completed and signed by the person
Q. The policy holder’s duty to disclose material facts lies at the time of ______
a. taking a policy
b. revival of policy
c. reinstatement of surrendered policy
d. all of the above
Q. Master policy is issued for _______
a. Term insurance schemes
b. permanent insurance
c. individual insurance
d. group insurance schemes
Q. Who pays premium under social security group insurance scheme?
a. Every member of the group
b. Panchayat of the village
c. 50% by a social security fund maintained by LIC of India
d. LIC of India
Q. Subrogation means ______
a. something of monetary value
b. to make good loss
c. payment of premium
d. transfer of rights of an insured to another person
Q. What is full form of FPA in the context of marine underwriting?
a. Foreign Policy Association
b. Free of Particular Average
c. Free Port Association
d. Food and Perishable Accounting
Q. Premium fixed by insurance company must be sufficient to _____
a. meet the claims
b. cover the expenses
c. both (a) and (b)
d. none of these
Q. Broker’s Association of India was granted recognition by IRDA on _________.
a. Dec 11, 2001.
b. Dec 11, 2002.
c. Dec 11, 1999.
d. Dec 11, 2003.
Q. Foreign equity participation is allowed in insurance sector up to a limit of ____ percent.
a. 80.
b. 73.
c. 49.
d. 26 .
Q. Moral hazard may be suspected in cases where _____
a. the life to be insured is old.
b. the insurance is for a very large sum insured
c. in the both the cases
d. none of the above cases
Q. Which one of the following statements is correct?
a. Underwriting is done only when there is a medical examination
b. Medical examination is necessary before a policy can be issued
c. Both (a) an (b) statements are correct
d. Both (a) and (b) statements are wrong
Q. Which one of the following statements is correct?
a. Workingwomen are treated at par with men
b. Educated women are treated at par with men
c. Both (a) an (b) statements are correct
d. Both (a) and (b) statements are wrong
Q. Financial underwriting is done to evaluate ____
a. the probability of the policy lapsing in future
b. the possibility of moral hazard
c. Both (a) an (b) statements are correct
d. Both (a) and (b) statements are wrong
Q. The net premium will be ______
a. less than the risk premium
b. more than the risk premium
c. calculated by adding expenses to the risk premium
d. more than the pure premium
Q. When interest rates fall, the tabular premium rates are likely to _______
a. increase
b. decrease
c. remain the same
d. equal