Top 150+ Solved Risk Management and Insurance MCQ Questions Answer
Q. Cargo ship caught by fire is an example of __________
a. particular average loss.
b. general average loss.
c. constructive total loss.
d. actual total loss.
Q. ___________ policy is granted only in respect of stock of inventories of the insured underfire insurance business.
a. Floating.
b. Declarations.
c. Replacement.
d. Value
Q. Insurance business is based on ___________
a. Parkinson’s law.
b. Newton’s law.
c. The theory of probability and law of large numbers.
d. Boyle’s law.
Q. Duty to minimize loss is incorporated in the policies through _________
a. warranties.
b. Conditions.
c. clauses.
d. declaratives
Q. _______ means those risks which involve a situation where there is a possibility of gain.
a. Personal risk.
b. Speculative risk.
c. Other risk.
d. Liability risk.
Q. A policy protecting a group of persons, usually employees of a firm generally called as ___________
a. Fire insurance policy.
b. Group insurance policy.
c. Marine insurance.
d. Automobile insurance.
Q. Which of the following is the similarity between insurance and gambling?
a. The amount of loss to be paid is known before hand.
b. Promise to pay on the happening of an event.
c. Both the parties win on happening of an event.
d. Both are enforceable at law.
Q. A human life is an income-generating asset______________
a. true.
b. false.
c. partially true.
d. partially false.
Q. Which of the following risks are insurable?
a. Speculative.
b. Economic.
c. Sure to happen.
d. Other risks.
Q. The premium actually paid by the policy holder depends upon___________
a. the wealth of the person to be insured.
b. the level of risk assessed by the insurer.
c. the tables of rates printed by the insurer.
d. agents report.
Q. Which one of the following statement is correct?
a. A life insurance policy is a contract, enforceable in a court of law.
b. A life insurance policy is not required to be stamped.
c. Both the statements are correct.
d. Both the statements are wrong.
Q. Notification of Alteration in Risk is a condition _____________.
a. precedent to liability.
b. subsequent to liability.
c. precedent to the contract.
d. subsequent to the contract.
Q. As the age increases risk on the life _______.
a. Increases.
b. Decreases.
c. does not change.
d. Moderate.
Q. If the interest rates in the market are higher, then cost of insurance _________.
a. Increases.
b. moderate.
c. Decreases.
d. no change.