1. Insurance is meant to
- prevent specified events
- prevent damage to assets from specified events
- compensate for losses from specified events *
- rebuild the assets lost because of specified events
2. Insurance compensates losses
- by replacing the original asset
- to the full extent of lost income,
- only to the extent of insured amount *
- all the three ways
3. Insurance is necessary because
· assets depreciate over time and through usage
· assets may be damaged by external causes *
· assets may breakdown and become unusable
· none of the above reasons
4. Insurance helps to
- reduce the consequences of adverse situations *
- make assets continuously productive
- ensure that assets never breakdown
- do all of the above
5. Insurance benefits replace
- all physical losses, in full
- all physical losses, partly
- all monetary losses, in full
- the monetary losses, but only to some extent *
6. Which of the following possibilities are insurable?
- that one may not win the lottery jackpot
- that the marriage will work out successfully
- that the son will get admission in the prestigious college he has applied for
- that it will rain on the day of the cricket match *
7. The amount of insurance depends on
- the peril
- the risk
- neither the peril nor the risk
- both the peril and the risk *
8. The amount payable under a life insurance policy depends on
- the income of the insured person at the time of the claim
- the income of the insured person when he took the insurance
- the amount of the Sum Assured *
- none of the above
9. State which of the following statements is correct
· Risk is uniform for all assets
· Life insurance improves standards of living *
· Both the above statements are correct
· Both the above statements are wrong
10. An insured person can afford to
- ignore safety precautions
- be less serious on the packaging of goods
- be lenient on controls in warehouses
- do none of these three *
11. Insurance works on the principle of
- sharing
- probabilities
- large numbers
- all of the above *
12. Insurance works on the principle of
- trust
- sharing
- randomness
- all of the above *
13. Insurance works on the principle of
· mutual help *
· charity
· both of the above
· neither of the above
14. Insurance works on the principle of
- equal contributions
- proportional contributions *
- contributions dependent on affordability
- none of the above
15. Micro insurance can be transacted by
- life insurers only
- non-life insurers only
- both life and non-life insurers *
- only by specially created insurers
16. State which of the following statements is correct
- Risk, if certain, cannot be insured.
- Risk refers to the loss that happens
- Both the above statements are correct *
- Both the above statements are wrong
17. A human being
- is an economic asset
- is an income earning asset
- is a perishable asset
- all the above *
18. A human being’s value is measured by
- the income that he generates *
- the value of the goods that he produces
- his academic qualifications
- all of the above
19. The asset, which is a human being, perishes when
- he dies
- he becomes disabled to work
- he retires from work
- in all the above situations *
20. Which of the following events are insurable in a life insurance policy?
- the child to be a born is not a male child
- the child, when born, has physical deformities
- Neither of the above situations *
- Both the above situations
21. The insurer, being a trustee, has to ensure that
- the claim paid is genuine
- the premium charged is fair and reasonable
- a suspicious claim is not paid
- all of the above *
22. An insurer, as a trustee, has to ensure that
- the life fund is safe
- the life fund earns the maximum interest
- both of the above *
- neither of the above
23. An insurer, as a trustee, is responsible to the
- the policyholders *
- the IRDA
- the Government
- all the above
24. An insurer, as a trustee, has to give priority to
- policyholders, as a class *
- an individual policyholder’s difficulties
- the claimant’s financial condition
- all of the above
25. The probability of 50% for an event happening means that the event
- will happen regularly every alternate occasion
- will happen 50% of the time over a very large number of trials
- will never exceed 50%, however large be the attempts made
- will become closer to 50% as the attempts increase *
26. The ‘probability’ of an event is mentioned
- as a ratio
- as a percentage
- neither as a percentage nor as a ratio
- either as a percentage or as a ratio *
27. A probability of ‘one in a hundred’ is valid
- when it happens once in a hundred trials
- even when the event happens fifty times in a thousand trials
- when the event does not happen even once in a hundred trials
- in all the above situations *
28. Insurance is legitimate
- when an adverse happening is likely *
- when an adverse happening is unlikely
- when an adverse happening is certain
- in all the above three situations
29. Insurance covers situations
- when the consequences of the happening are beneficial
- when the consequences are harmful *
- when the consequences are immaterial
- when the consequences cannot be measured in money terms
30. Life insurance is arranged because
- some one may die
- some one may live
- of both the above reasons *
- of neither of the above reasons
31. In a life insurance contract, the beneficiary may be the
- the policyholder
- the life insured
- the dependents of the life insured
- all the three mentioned above *
32. Which one of these principles does not apply in the case of a life insurance contract?
- the principle of indemnity *
- the principle of good faith
- the principle of insurable interest
- the principle of large numbers
33. Insurance benefits
- Individuals
- the country
- the society
- all the three *
34. Insurance reduces the burden on
- the society
- individual families
- business houses
- all the three *
35. The business of insurance has
- social implications
- impact on economic development of the country
- impact on the economic well being of families
- all the above implications *
36. The business of insurance affects
- availability of capital for business *
- the life span of individuals
- the safety of equipments in factories
- all these three
37. The competition for the business of life insurance is
- non-life insurance
- small savings
- house property
- none of these three *
38. The competition for the life insurance agent comes from those who canvass for
· small savings
· mutual funds
· house property
· all the three above *
39. Life insurance is better than other avenues of savings in respect of
· marketability
· liquidity
· transferability
· all the three above *
40. Life insurance is better than other avenues of savings in respect of
- appreciation
- tax benefits
- usefulness in emergency *
- all of the above
41. State which of the following statements is correct
- Insurance is related to probable loss. *
- Perils are avoidable
- Both the above statements are correct
- Both the above statements are wrong
42. State which of the following statements is correct
- Premium is based on expectation of losses
- Living too long is a risk
- Both the above statements are correct *
- Both the above statements are wrong
43. State which of the following statements is correct
- The strength of a wrestler can be insured
- The losses are shared equally by all the policyholders
- Both the above statements are correct
- Both the above statements are wrong *
44. State which of the following statements is correct
- Insurance prevents the risk
- Insures compensates losses in full
- Both the above statements are correct
- Both the above statements are wrong *
45. Reinsurance is the name given to
- An individual taking insurance for the second time
- An insurer placing insurance with another insurer *
- Both the above situations
- Neither of the above situations
46 State which of the following statements is correct
- Living too long is a blessing, not a risk
- Living too long is a risk *
- Both the above statements are correct
- Both the above statements are wrong
47 State which of the following statements is correct
- Perils are avoidable
- Perils are not avoidable *
- Both the above statements are correct
- Both the above statements are wrong
48. State which of the following statements is correct
- Probabilities of death and of survival are mutually exclusive
- There are no substitutes for life insurance
- Both the above statements are correct *
- Both the above statements are wrong
0 comments:
Post a Comment