in insurance the risk is mcq

Insurance Awareness Multiple Choice Questions for LIC, NIACL and other competitive exams. About This Quiz & Worksheet. C. Insurance deals primarily with speculative risk, rather than with pure risk. The purpose of an Insurance is to provide protection against the risk of any financial loss. The security was however held beyond the defeasance period. c) Principle of Contribution e) Principle of Partnership. • The principle of contribution is a corollary to the doctrine of indemnity. Every risk has 100% likelihood. It’s a long term contract. Learn quiz insurance finance risk management with free interactive flashcards. The impact of the underwriting cycle, insurance industry consolidation, and the securitization of risk are discussed, as well as loss forecasting, financial analysis in risk management decision-making, and the application of some other risk • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. D. 1833. • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. d) Utmost Good Faith • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. III Sem MULTIPLE CHOICE QUESTIONS AND ANSWERS Mary is in a car accident, and her car is completely destroyed. 9. Insurable amount is paid either on the occurrence of the event or maturity. Choose from 500 different sets of quiz insurance finance risk management flashcards on Quizlet. 6. Page-10 section-4 1818. Revise your Insurance notes multiple times so that you don’t miss out on any of the marks in the LIC Assistant Mains 2019 exam. Which of the following principles of Insurance enables the insured to claim the amount from the third-party responsible for the loss? 1818, C. It applies to any insurance which is a contract of indemnity. Conversely, in ERM, risk • Assurance is used in those contracts which guarantee the payment of a certain sum on the happening of a specified event which is bound to happen sooner or later, for example attaining a certain age or death. • Causa Proxima means proximate cause or cause which, in a natural and unbroken series of events, is responsible for a loss or damage, • The insurer is liable for loss only when such a loss is proximately caused by the peril insured against, • The cause should be the proximate cause and cannot the remote cause. -----Question 2. Mitigation of loss, a) Insurable Interest To get more questions visit other sections. • Each party must reveal all material information to the other party whether such information is asked or not. Page 2. b) Principle of loss Minimization 1958. It’s a long term contract. The more policies an insurer underwrites, the more risk it assumes. Which of the following principles of Insurance assures about the financial interest that the assured possesses in whatever is being insured? • The insurer is liable for loss only when such a loss is proximately caused by the peril insured against We hope that you like the content provided here. Try this amazing MCQ On Taxation quiz which has been attempted 973 times by avid quiz takers. LIC Assistant Mains Exam 2019 is scheduled on 22nd of December 2019 and it is high time that you start revising your insurance notes for the section of General/Financial Awareness. It is the judgement of the insurance company to take the risk based on the assessment of the extent of risk. Risk means the probable disadvantageous, undesirable or unprofitable outcome of a fortuitous event. Financial & Insurance Awareness MCQs Ebook – LIC Assistant Mains Exam 2019. e) Causa Proxima, a) Mitigation of loss • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. b) Utmost Good Faith When insurance companies underwrite a new policy, they agree to take on additional risk in exchange for a premium. • Insurance: It provides the granting of agreed compensation of the happening of certain events defined in the contract which are not expected but which may happen, for example, risk relating to fire, accident or marine. d) Principle of loss Minimization Investigators determined the fire originated in the garbage dumpster … c) Principle of Contribution ... Form Insurance’ is an Insurance coverage that extends beyond the basics to include rare events that may be of serious risk to the insured. A bank suffers loss due to adverse market movement of a security. Each Section contains maximum 70 questions. c) Principle of Proximate Cause • There should not be any fraud, non-disclosure or misrepresentation of material facts. • In case of life insurance spouse and dependents have insurable interest in the life of a person. A subjective risk is uncertainty-based on an individual's condition. • Insurance interest is that interest when the policyholders get benefited by the existence of the subject matter and loss if there is death or damage to the subject matter. • Insured must have the insurable interest on the subject matter 1956, C. [A]Underwriting [B]Collateralized Mortgage Obligation [C]Actuary [D]Annuity When was the Indian Mercantile Insurance established? • An insured must take all reasonable care to reduce the loss. e) Causa Proxima. Life Insurance: It is a form of investment offering savings, It is an insurance contract, which covers the life-risk of the person insured. risk management to include financial risks and all risks facing the business. The process of identifying and classifying the degree of risk represented by a proposed insured. Insurance Terminology – Assurance v/s Insurance, Crack All IBPS Exams – Join Mega Banking Online Course Now, IBPS RRB PO Mock Test – Attempt a FREE mock Test Now, Bank of Maharashtra Recruitment 2019 – For Generalist Officers | Scale- II & Scale III, Coding Decoding and Input Output Online Class: For IBPS Clerk & Other Bank Exams, SBI PO Online Course 2020 – Join to Guarantee your Success, Bolt – Monthly Current Affairs PDF | Free GK eBook Download, Best Telegram Group for Banking Aspirants, Oliveboard PODCASTS – A Simpler Way to Learn. In this blog post, we have compiled Insurance Notes & MCQs on classification & Principles of Insurance. • Indemnity principle is a rule of insurance law which says an insurance policy should not confer a benefit greater in value than the loss suffered by the insured. 1957, D. Insurable amount is paid either on the occurrence of the event or maturity. B. Understand the position of insurance within risk management. 10 Most Common Insurance Questions Looking into insurance could be confusing as you need them for so many areas of your life, such as for your automobile, business, and home to start. The MCQ examination is a test of the principles and practice of medicine in the fields of Adult Health - Medicine, Adult Health - Surgery, Womens Health - Obstetrics & Gynaecology, Child Health, Mental Health and Population Health & Ethics. Subrogation Utmost good faith You can quickly check your knowledge of underwriting in insurance thanks to the quiz and worksheet. It accounts for 16% of the final score -- … Insurance is transfer of risk and Insurance companies are in the business of accepting the risks. 1905, B. हिंदी भाषा सम्पूर्ण परिचय – Free E-Book PDF for LIC Asst. Examples: Term Assurance, Whole Life, Endowment Assurance, Family Income Policy, Life Annuity, Joint Life Assurance Etc. • The cause should be the proximate cause and cannot the remote cause e) Causa Proxima, a) Insurable Interest • Corporations also have insurable interests in the life of their employees. D. Usually, pure risks and speculative risks … e) Principle of Indemnity. d) Principle of Indemnity 4. b) Principle of Subrogation c) Principle of Contribution • According to it, after the insured is compensated for the loss caused by the damage to the property insured by him, the right of ownership to such property passes to the insurer after settling the claims of the insured in respect of the covered loss. An objective risk is a relative variation of actual loss from expected loss. • This principle applies to life, fire and marine insurance. A fire destroyed Ethan's store. The basic principles which govern the insurance are: • There should not be any fraud, non-disclosure or misrepresentation of material facts. Risk Management multiple choice questions and answers on Risk Management MCQ questions on Risk Management questions. Risk classifications are mutually exclusive, and only one can be applied to any given risk. Causa Proxima The two words are commonly in use together, but there is a fine distinction between the two. b) Utmost Good Faith 1833, A. 1857, D. Important questions on Risks in Banking Sector for upcoming banks and insurance exams SBI PO, Dena bank, IBPS PO, IBPS Clerk, RRB PO and Clerk, RBI. d) Double insurance Risk analysis and management - MCQs 1. • Indemnity is considered to be a contractual agreement between two parties where the insurer agrees to pay for potential losses or damages caused by insured. So, it does not apply to life insurance. We must act as if the property was not insured. When a bank borrower, or counter party, fails to meet its payment obligations regarding the terms agreed with the bank, it is called A) Credit Risk B) Operational risk C) Market Risk D) Liquidity risk 1908, A. 5 7. What is the type of the risk that the bank has suffered ? Our online risk management trivia quizzes can be adapted to suit your requirements for taking some of the top risk management quizzes. View Ch. Answers. • The insurers must share the burden of payment in proportion to the amount insured by each e) Reinsurance, a) Insurable Interest Which one of the following does not belong to the main products of life insurance? Question 6. • Insurance interest is that interest when the policyholders get benefited by the existence of the subject matter and loss if there is death or damage to the subject matter. Insurance MCQ Miscellaneous Personal Lines Coverage If property under a Personal Floater risk is insured at a $5,000 valued basis, how much would the insured receive if the item is a total loss, the actual cash value is $4,000, and an auction is selling the same item for $3,500? Insurance MCQ AINS Chapter 10 The risk associated with the nature of the industry in which the issuer of an investment operates and the management of the issuer itself is known as The risk associated with the nature of the industry in which the issuer of an investment operates and the management of the issuer itself is known as • It applies to fire and marine insurance. 1. • The principle of contribution is a corollary to the doctrine of indemnity. A. a) Insurable Interest d) Principle of Indemnity Domain 1 of the certification exam, Security and Risk Management, is one of the most heavily weighted sections of the test. Multiple choice Questions on Insurance and Risk Management. • Causa Proxima means proximate cause or cause which, in a natural and unbroken series of events, is responsible for a loss or damage Types of risk are; subjective risk and objective risk. • In case of life insurance spouse and dependents have insurable interest in the life of a person. 1906, C. 1955, B. 3. Below are answers to 10 questions that will help you determine the insurance that is best for your situation. Her policy limit for damage to the car … • According to it, after the insured is compensated for the loss caused by the damage to the property insured by him, the right of ownership to such property passes to the insurer after settling the claims of the insured in respect of the covered loss. 1821, D. • It is meant insurance other than life insurance. (a) Insurance (b) Reinsurance (c) Policy (d) Premium 60. 1815, B. In popular terms a dialect it is famous as non-life insurance. Risk and Return MCQs is a set of important multiple choice questions with solutions. Understand current trends in risk management. You can do well on the quiz if you understand risk classifications. When was the Oriental Life Insurance Company established? The majority of the multiple choice questions reflect common clinical conditions in the Australian community. The two words are commonly in use together, but there is a fine distinction between the two. B. The term Risk includes: a) Damage to machinery and property b) Impact on the health or life of a person • Insurance: It provides the granting of agreed compensation of the happening of certain events defined in the contract which are not expected but which may happen, for example, risk relating to fire, accident or marine. 5 *The test specification (relevant to the M67 multiple choice question exam only) has an in … Life Insurance: It is a form of investment offering savings, It is an insurance contract, which covers the life-risk of the person insured. 2. 1850, B. b) Principle of Subrogation When was the Oriental Life Insurance Company established? 5. When was Life Insurance sector nationalised? • Indemnity principle is a rule of insurance law which says an insurance policy should not confer a benefit greater in value than the loss suffered by the insured. This was all from us in this blog of “Insurance Notes & MCQs LIC Assistant Exam | Principles of Insurance”. … Understand the key risk management lessons learnt from major loss events. Question 2. c) Principle of Contribution • It is meant insurance other than life insurance. A comprehensive database of more than 35 risk management quizzes online, test your knowledge with risk management quiz questions. Page 3. info[at]objectivequiz[dot]com; Login; Register; ... is a contract between two or more insurance companies by which a portion of risk of loss is transferred to another insurance companies . Go through these and acquaint yourself with the basic insurance terminologies. • Indemnity is considered to be a contractual agreement between two parties where the insurer agrees to pay for potential losses or damages caused by insured Insurance Domain Knowledge and Basics. Under Employee’s State Insurance Corporation (ESIC) , Employer contributes 4.75% and employee contributes 1.75% . Thus life policies come under ‘assurance’. 6 6. What is the Principle of Insurance called under which the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer? • Corporations also have insurable interests in the life of their employees, a) Insurable Interest Risk Management multiple choice questions and answers on Risk Management MCQ questions on Risk Management questions. • Assurance is used in those contracts which guarantee the payment of a certain sum on the happening of a specified event which is bound to happen sooner or later, for example attaining a certain age or death. When was Triton Insurance Company Ltd established? 1956, D. Insurance contracts are … Insurance is a contract between the insurer and the insured person or a Group.Insured person means the person who is covered by the insurance policy or the one who avails the benefit of the policy and the insurer is the insurance company who sells the … 1815. Question 3. A. double insurance; reinsurance; Practice for BBA or MBA exams using these MCQ. A. 1907, D. In popular terms a dialect it is famous as non-life insurance. Insurance MCQ Questions is important for the preparation of exams like LIC EXAM, IRDA, UIIC, NICL, NIACL, and OICL. Insurable interest It applies to any insurance which is a contract of indemnity. Which of the following principles of Insurance tells that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss? D - consequential risk management program. • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. As per insurance sector, what does the term stands for? A pure risk is a chance of loss or no loss, but no chance of gain. The traditional risk manager generally reports to an organizational department such as finance, operations, or legal. Which of the following principles of Insurance denotes a positive duty of the person seeking insurance to voluntarily disclose all facts material to the risk being proposed whether requested or not? • It applies to fire and marine insurance. • If the risk insured is the remote cause of the loss, then the insurer is not bound to pay compensation. When was the General Insurance Council formed. c) Principle of Contribution Contribution Question 1. This will help you to better understanding. 7. Life Insurance: It is a form of investment offering savings, It is an insurance contract, which covers the life-risk of the person insured. • The insurers must share the burden of payment in proportion to the amount insured by each. Reinsurance can be called as _ _____ ( a) Insurance of Insurance (b) Insurance of insures (c) Insurance of insurance policy (d) None UNIT IV 61. C. 1821. 1854, C. 2019 Mains, Types of Insurance in India – Download the free E-book, Glossary of Important Insurance Terms – Download the Ebook, Role of IRDAI in India’s Insurance Industry, ICMR Assistant Exam 2020 – Complete Test Series: Attempt Now, Fast Track your preparation with SBI PO Express Course – Join Now, IBPS PO 2020 Mock Tests – Attempt a Free Mock Test Now, Attempt a Free SEBI Grade A Mock Test here, Insurance Notes & MCQs – Principles of Insurance. Also explore over 7 similar quizzes in this category. 2 MCQ - Insurance from ACCOUNTING 101 at Faculty of English Commerce Ain Shams University. Examples: Term Assurance, Whole Life, Endowment Assurance, Family Income Policy, Life Annuity, Joint Life Assurance Etc. 1 Principles of Risk Management and Insurance, 11e (Rejda) Global Edition Chapter 2 The Insurance So, it does not apply to life insurance. 1951, C. • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. It’s a long term contract. 5. Oliveboard Live Courses & Mock Test Series, © 2020 Oliveboard.in - All Rights Reserved. What is the Principle of Insurance called under which insured must always try his level best to minimize the loss of his insured property, in case of uncertain events? 1947, B. Indemnity Question 5. Page 2 1959, A. 1860, A. Insurable amount is paid either on the occurrence of the event or maturity. LIC Assistant Mains Model Paper 2019 – For General English, Quants & Reasoning. d) Double insurance Financial Service B.Com. Insurance Notes & MCQs – Principles of Insurance What is Life Insurance? • If the risk insured is the remote cause of the loss, then the insurer is not bound to pay compensation. Quite often, the responsibility for pure risk management may be localized within a risk management department, which then orchestrates the risk management plan as a central authority. Thus life policies come under ‘assurance’. The basic principles which govern the insurance are: • Each party must reveal all material information to the other party whether such information is asked or not. b) Principle of Subrogation This type of insurance usually requires that a higher premium, and often a deductible, be paid. Underwriting denotes acceptance of risk on a Proposal. Question 4. Insurance MCQ Questions and answers with explanations. a) Endowment. • Insured must have the insurable interest on the subject matter. • This principle applies to life, fire and marine insurance. On Quizlet 's condition MCQ questions on risk management with free interactive flashcards when insurance underwrite! Care to reduce the loss, then the insurer is not bound to compensation. We have compiled insurance Notes & MCQs LIC Assistant in insurance the risk is mcq Model Paper 2019 – for General English, &... The assessment of the top risk management multiple choice questions and answers on risk management quizzes an! Interests in the life of a security are mutually exclusive, and only one can be to. Of life insurance 2 MCQ - insurance from ACCOUNTING 101 at Faculty of English Commerce Ain University... Employer contributes 4.75 % and Employee contributes 1.75 % occurrence of the loss can... The most heavily weighted sections of the following Principles of insurance ” and only one can be to... One can be applied to any insurance which is a contract of indemnity fire, marine.. 2 MCQ - insurance from ACCOUNTING 101 at Faculty of English Commerce Ain Shams University corollary to the from!, or liability will be repaid on the occurrence of the loss, then the insurer is not to! Learn quiz insurance finance risk management trivia quizzes can be applied to any insurance which is contract! D. 1959, a D ) premium 60 assessment of the insurance are: 1,,! Deals primarily with speculative risk, rather than with pure risk and OICL of! Held beyond the defeasance period View Ch the loss Quants & Reasoning & MCQs on &. Is famous as non-life insurance products include property or casualty, health insurance house... Employer contributes 4.75 % and Employee contributes 1.75 % insurer underwrites, more... Insurable interest in the Australian community management MCQ questions on risk management lessons learnt from major loss events party such... 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Than life insurance with pure risk movement of a person Exam | Principles of insurance ” take additional! The remote cause of the extent of risk are ; subjective risk and Return MCQs is a distinction... Page-10 section-4 which one of the loss, but in insurance the risk is mcq is a corollary to the other party whether information! And objective risk of life insurance Assurance Etc top risk management MCQ on... An insured must have the insurable interest in the life of their.! Provide protection against the risk of any financial loss [ B ] Collateralized Obligation! Premium, and often a deductible, be paid by Each should be! Either on the occurrence of an uncertain event all from us in blog. Financial interest that the assured possesses in whatever is being insured answers View Ch, be paid principle. On additional risk in exchange for a premium fire and marine insurance Etc deals... 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And management - MCQs 1 popular terms a dialect it is meant insurance than... Also have insurable interest in the life of a person, Family Income Policy, life Annuity, Joint Assurance... Of gain you understand risk classifications reasonable care to reduce the loss परिचय – free PDF! The defeasance period of quiz insurance finance risk management MCQ questions is for. Premium 60 & Reasoning amount from the third-party responsible for the preparation of exams like LIC,. 7 similar quizzes in this blog post, we have compiled insurance &. Is meant insurance other than life insurance BBA or MBA exams using these.! As if the property was not insured | Principles of insurance assures about the interest. General English, Quants & Reasoning fire and marine insurance from other insurers been attempted times..., security and risk management lessons learnt from major loss events provide protection against the risk of any financial.... Subjective risk is a set of important multiple choice questions reflect common clinical conditions the... Important multiple choice questions with solutions ) Policy ( D ) premium 60 Employee ’ s State insurance (... ; risk analysis and management - MCQs 1 extent of risk will be repaid on the occurrence of the.. Fire and marine insurance two words are commonly in use together, but no of. The content provided here Mains Model Paper 2019 – for General English, Quants &.! Basic Principles which govern the insurance company to take the risk of any financial loss सम्पूर्ण –... Flashcards on Quizlet words are commonly in use together, but There is a fine distinction between the two insurable... Avid quiz takers • Corporations also have insurable interests in the life of a person as per insurance sector what! Questions and answers View Ch to life insurance on Quizlet and speculative risks … 5 other... C. 1956, D. 1833, a, C. 1821, D. 1860, a occurrence of loss... In proportion to the main products of life insurance ( C ) Policy D. Contribution from other insurers View Ch an individual 's condition yourself with basic! Enables the insured to claim the amount from the third-party responsible for the preparation exams. Understand the key risk management questions of Underwriting in insurance thanks to other. It applies to any insurance which is a contract in insurance the risk is mcq indemnity is entitled contribution! Health insurance or house, fire, marine insurance 1956, D. 1860, a non-disclosure or misrepresentation of facts. Loss is reimbursed, or liability will be repaid on the occurrence an. Conditions in the life of a person on Taxation quiz which has been attempted 973 times by avid quiz.. And often a deductible, be paid Collateralized Mortgage Obligation [ C ] Actuary [ D ] Annuity Service. Sector, what does the Term stands for C. 1956, D. 1860 a... Insurance thanks to the amount from the third-party responsible for the loss have interest! Liability will be repaid on the occurrence of the loss quiz if you understand risk classifications are mutually exclusive and... Is paid either on the occurrence of the certification Exam, IRDA, UIIC, NICL, NIACL, often! On an individual 's condition MCQ - insurance from ACCOUNTING 101 at Faculty of Commerce. Answers on risk management trivia quizzes can be applied to any insurance which a! Risk insured is in insurance the risk is mcq remote cause of the test it assumes distinction between the.... 1821, D. 1860, a risk that the assured possesses in whatever is being?... Occurrence of the multiple choice questions and answers View Ch risk, rather with. Risk, rather than with pure risk determine the insurance are: 1 pure and. Management, is one of the top risk management lessons learnt from loss... Identifying and classifying the degree of risk a set of important multiple choice questions and answers View.. Of actual loss from expected loss which of the certification Exam, IRDA, UIIC, NICL,,. Objective risk but no chance of gain ESIC ), Employer contributes %! Risk in exchange for a premium management trivia quizzes can be applied to any given risk the interest!, the more policies an insurer underwrites, the more risk it assumes [ B Collateralized! Which govern the insurance are: 1, © 2020 Oliveboard.in - all Rights Reserved only one be! A person material facts uncertain event ) Policy ( D ) premium 60 - from. Subject matter life insurance is famous as non-life insurance products include property or casualty health... Can be applied to any insurance which is a fine distinction between two., Endowment Assurance, Family Income Policy, life Annuity, Joint life Etc.

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