Insurance and Risk Management
51. The possibility that actual results may differ from predicted results is known as ______________.
- Risk.
- Uncertainty.
- Peril.
- Hazards.
Correct answer: (A)
Risk.
52. The success of whole process of risk management depends on its ______________.
- Identification
- Risk analysis
- Assessment of risk
- 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 ______________.
- Cost of Loss Financing
- Cost of Control of loss
- Cost of Residual Uncertainty
- 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 ______________.
- solid vendor account team
- internal access to system expert
- assessment in proper manner
- clear and comprehensive specifications
Correct answer: (C)
assessment in proper manner
55. The risk management can be done by ______________.
- Insurance
- Hedging
- Derivatives
- 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 ______________.
- Loss prevention
- Loss reduction
- Hedging
- Insurance
Correct answer: (B)
Loss reduction
57. ______________ is the extra payment done for administrative and capital cost.
- Premium
- Premium loading
- Interest
- 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 ______________.
- Insurable interest
- Subrogation
- Proximate clause
- Money back policy
Correct answer: (B)
Subrogation
59. The principle of indemnity is applicable to ______________ only.
- Life Insurance
- Personal accident insurance
- Proximate Cause
- 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.
- Guarantee
- Express Warranties
- Implied Warranties
- Waiver Clause
Correct answer: (C)
Implied Warranties