Insurance and Risk Management 3

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Objective Questions and Answers of MBA: Insurance and Risk Management 3

Subject: Objective Questions and Answers of MBA: Insurance and Risk Management 3

Part 3: Objective questions and answers of Insurance and Risk Management

 

Q1. The principles of indemnity do not apply to ______________.

a) Burglary insurance

b) Fire insurance

c) Marine insurance

d) Life and personal accident insurance

 

Q2. Cost of risk has the following components ______________.

a) Cost of expected losses and cost of control of loss

b) Cost of expected losses and cost of loss financing

c) Cost of control of loss and cost of loss financing

d) Cost of expected loss, cost of control of loss cost of financing, cost of residual uncertainty

 

Q3. To avoid rmis being obsolete provide ______________.

a) Solid vendor account team

b) Internal access to system expert

c) Standard software configuration

d) Clear and comprehensive specifications

 

Q4. Which of the statements is correct? A. Insurance is a transfer of risk mechanism. B.

Insurance gives physical protection to assets.

a) Statement a

b) Statement b

c) Both the statements

d) Neither of the statements

 

Q5. This policy covers all risks to the ship and its cargo while the ship is at a particular port

______________.

a) Voyage policy

b) Floating policy

c) Time policy

d) Port risk policy

 

Q6. Assignment of life policy means ______________.

a) Transferring rights to the assignee

b) Policy holder is entitled to the paid up value

c) Paid up value is always higher than surrender value

d) Value payable on assured death or maturity

 

Q7. The risk which arises because of change in major economic, social, cultural and political factors is ______________.

a) Particular risk

b) Fundamental risk

c) Speculative risk

d) Dynamic risk

 

Q8. If the premium loading is zero then purchasing insurance ______________

a) Does not change the persons expected wealth

b) Changes the persons expected wealth

c) Increases the variability of wealth

d) No change in expected wealth

 

Q9. Taylor Tobacco Company is concerned that the company may be held liable in a court of law and forced to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses is known as ______________.

a) Moral hazard

b) Particular risk

c) Speculative risk

d) Legal hazard

 

Q10. Credit risk is high in case of ______________.

a) Companies

b) Partnership

c) Financial institutions

d) None of these

 

Q11. The cause of loss or a contingency that may cause a loss due to nature is known as

______________

a) Hazard

b) Peril

c) Risk

d) Uncertainty

 

Q12. Type of risk management is ______________

a) Risk retention, risk analysis, risk financing

b) Risk analysis, risk control, risk financing

c) Risk control, risk retention, risk avoidance

d) Risk analysis, risk control, risk financing

 

Q13. The risks which have some financial impact from the part of risk management are ______

a) Dynamic and speculative risk

b) Pure and speculative risk

c) Pure and static risk

d) Personal and static risk

 

Q14. Identification of sources of hazard will have to be done by the ______________.

a) Production manager

b) Risk manager

c) Finance manager

d) General manager

 

Q15. The number of elements of uncertainty in most type of events is ______________.

a) Three

b) Two

c) One

d) Five

 

Q16. Except life assurance the maximum term of other insurance is ______________.

a) Twelve months

b) Twenty four months

c) Six months

d) Thirty six months

 

Q17. Transfer of risk to other party is done through ______________.

a) Reduction

b) Control

c) Retention

d) Insurance

 

Q18. If rmis shows lack of service then you need to provide ______________.

a) Reference checks including on site

b) Assessment in proper manner

c) Financial check

d) Standard software configuration

 

Q19. Which of the following helps in risk improvement?

a) Fire brigade

b) Salvage corps

c) Engineers who survey property to be insured

d) Ambulance

 

Q20. Malhotra committee was appointed in

a) 1993

b) 1994

c) 1999

d) 2000

 

Part 3: Objective questions and answers of Insurance and Risk Management

 

Q1. Answer d

 

Q2. Answer d

 

Q3. Answer c

 

Q4. Answer a

 

Q5. Answer d

 

Q6. Answer a

 

Q7. Answer b

 

Q8. Answer a

 

Q9. Answer d

 

Q10. Answer c

 

Q11. Answer b

 

Q12. Answer d

 

Q13. Answer b

 

Q14. Answer a

 

Q15. Answer b

 

Q16. Answer a

 

Q17. Answer d

 

Q18. Answer c

 

Q19. Answer c

 

Q20. Answer a

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