Insurance and Risk Management MCQS WITH ANSWERS PART 5

 

Insurance and Risk Management

51. The possibility that actual results may differ from predicted results is known as ______________.

1. Risk.
2. Uncertainty.
3. Peril.
4. Hazards.

Correct answer: (A)
Risk.

52. The success of whole process of risk management depends on its ______________.

1. Identification
2. Risk analysis
3. Assessment of risk
4. Evaluation of risk

Correct answer: (A)
Identification

53. That which covers the cost of self insurance, loading in insurance premiums and enforcing hedging arrangements is ______________.

1. Cost of Loss Financing
2. Cost of Control of loss
3. Cost of Residual Uncertainty
4. Cost of Internal Risk Reduction

Correct answer: (A)
Cost of Loss Financing

54. If RMIS has poor system documentation then the remedy is to provide ______________.

1. solid vendor account team
2. internal access to system expert
3. assessment in proper manner
4. clear and comprehensive specifications

Correct answer: (C)
assessment in proper manner

55. The risk management can be done by ______________.

1. Insurance
2. Hedging
3. Derivatives
4. All of the above

Correct answer: (D)
All of the above

56. 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 ______________.

1. Loss prevention
2. Loss reduction
3. Hedging
4. Insurance

Correct answer: (B)
Loss reduction

57. ______________ is the extra payment done for administrative and capital cost.

1. Premium
2. Premium loading
3. Interest
4. Contingency

Correct answer: (B)
Premium loading

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

1. Insurable interest
2. Subrogation
3. Proximate clause
4. Money back policy

Correct answer: (B)
Subrogation

59. The principle of indemnity is applicable to ______________ only.

1. Life Insurance
2. Personal accident insurance
3. Proximate Cause
4. Property insurance

Correct answer: (D)
Property insurance

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

1. Guarantee
2. Express Warranties
3. Implied Warranties
4. Waiver Clause

Correct answer: (C)
Implied Warranties

MCQs With Answers

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