Insurance and Risk Management 2

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Objective Questions and Answers of MBA: Insurance and Risk Management 2

Subject: Objective Questions and Answers of MBA: Insurance and Risk Management 2

Part 2: Objective questions and answers of Insurance and Risk Management


Q1. The insurance is a ______________

a) Contract

b) Uncertainty

c) Peril

d) Hazard


Q2. An alternative approach to the check list is ______________

a) Threat analysis

b) Event analysis

c) Operability study

d) Minimum level analysis


Q3. Insurance is best suited to risk with ______________.

a) High frequency and low loss severity.

b) Low frequency and high loss severity.

c) Minimum frequency and no loss severity.

d) High frequency and high loss severity.


Q4. An instrument by which a pure risk is transferred by a party other than insurer is

a) Insurance

b) Retention.

c) Non insurance transfer.

d) Reinsurance.


Q5. That which is designed to improve the information on which decisions are take to reduce risk is ______________.

a) Transfer

b) Research.

c) Costs.

d) Deflation.


Q6. The possibility that actual results may differ from predicted results is known as ____.

a) Risk.

b) Uncertainty.

c) Peril.

d) Hazards.


Q7. If rmis has poor system documentation then the remedy is to provide ______________.

a) Solid vendor account team

b) Internal access to system expert

c) Assessment in proper manner

d) Clear and comprehensive specifications


Q8. The installation of heat or smoke activated sprinkler systems that are designed to minimize fire damage in the outbreak of a fire is an example of ______________.

a) Loss prevention

b) Loss reduction

c) Hedging

d) Insurance


Q9. Transfer of rights and remedies of the insured to the insurer after indemnity has been affected is called ______________.

a) Insurable interest

b) Subrogation

c) Proximate clause

d) Money back policy


Q10. ______________ is those terms, which are implied in every contract of marine insurance unless they are expressly excluded.

a) Guarantee

b) Express warranties

c) Implied warranties

d) Waiver clause


Q11. A person employed to do any act for another or to represent another in dealing with a third person refers to ______________.

a) Principal

b) Employee

c) Agent

d) Development officer


Q12. The term assurance refers to ______________.

a) Life insurance business

b) Marine insurance business

c) Fire insurance business

d) Motor vehicle business


Q13. Which of the following is the last step in the risk management process?

a) Insurance

b) Review

c) Risk evaluation

d) Loss prevention


Q14. The risk which has three outcomes with possibility of gain is ______________

a) Pure

b) Speculative

c) Static

d) Dynamic


Q15. The Medias used for direct marketing are

a) Direct mail

b) Telephone contacts

c) Kiosks

d) All the above


Q16. A bank assurance started in India was ______________.

a) 2002

b) 2003

c) 2001

d) 2000


Q17. Risk management process includes ______________

a) Risk analysis

b) Risk control

c) Risk analysis and control

d) Risk reduction


Q18. Insurance is a risk management technique involving

a) Risk retention

b) Risk avoidance

c) Loss control

d) Risk transfer


Q19. Restoring a policy holder to his pre-loss financial position means ______________.

a) Contribution

b) Indemnity

c) Good will

d) Liquid asset


Q20. The strategy pursued by the business firms to tackle risk by spreading into a number of businesses is ______________.

a) Diversification

b) Centralization

c) Risk retention

d) Financing


Part 2: Objective questions and answers of Insurance and Risk Management


Q1. Answer a


Q2. Answer a


Q3. Answer b


Q4. Answer c


Q5. Answer b


Q6. Answer a


Q7. Answer c


Q8. Answer b


Q9. Answer b


Q10. Answer c


Q11. Answer c


Q12. Answer a


Q13. Answer a


Q14. Answer b


Q15. Answer d


Q16. Answer a


Q17. Answer c


Q18. Answer d


Q19. Answer b


Q20. Answer a

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