Insurance and Risk Management MCQS WITH ANSWERS PART 1

Insurance and Risk Management

1. The Insurance is a ______________

1. Contract
2. Uncertainty
3. Peril
4. Hazard

Correct answer: (A)
Contract

2. Losses arising due to a risk exposure retained or assured is known as ______________

1. Risk Reduction
2. Risk Financing
3. Risk Retention
4. Risk Sharing

Correct answer: (C)
Risk Retention

3. An alternative approach to the check list is ______________

1. Threat Analysis
2. Event Analysis
3. Operability Study
4. Minimum Level Analysis

Correct answer: (A)
Threat Analysis

4. The measures aimed at avoiding,eliminating or reducing the chances of loss production is covered by ______________

1. Risk Control
2. Risk Retention
3. Risk Avoidance
4. Risk Financing

Correct answer: (A)
Risk Control

5. Insurance is best suited to risk with ______________.

1. high frequency and low loss severity.
2. low frequency and high loss severity.
3. minimum frequency and no loss severity.
4. high frequency and high loss severity.

Correct answer: (B)
low frequency and high loss severity.

6. The risk manager maybe able to identify the new ventures involved in ______________.

1. Pure risk.
2. Group Risk.
3. Speculative risk.
4. Particular risk.

Correct answer: (A)
Pure risk.

7. An instrument by which a pure risk is transferred by a party other than insurer is

1. Insurance
2. Retention.
3. Non Insurance Transfer.
4. Reinsurance.

Correct answer: (C)
Non Insurance Transfer.

8. The Person whose risk is insured is called ______________.

1. Insured
2. merchandiser
3. marketer
4. Agents

Correct answer: (A)
Insured

9. That which is designed to improve the information on which decisions are take to reduce risk is ______________.

1. Transfer
2. Research.
3. Costs.
4. Deflation.

Correct answer: (B)
Research.

10. Uncertain events are broadly classified as ______________.

1. Predictable and Unpredictable.
2. Possible and Impossible
3. Natural and Artificial.
4. Rare and Continuous

Correct answer: (A)
Predictable and Unpredictable.

MCQs With Answers

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