Insurance and Risk Management Questions and Answers Part-2

1. Pure Risk was grouped ______________.
a) Property Risk
b) Personal Risk.
c) Liability risk
d) All the above

Answer: d

2. A bancassurance started in India was ______________.
a) 2002
b) 2003
c) 2001
d) 2000

Answer: a

3. ______________ refers to distribution of insurance products through
a) Bank
b) Company
c) Co-operatives
d) Sole trader

Answer: a

4. Risk Management process includes ______________
a) Risk Analysis
b) Risk Control
c) Risk Analysis and Control
d) Risk Reduction

Answer: c

5. The foundation for risk Management is provided by ______________
a) Risk Control
b) Risk Analysis
c) Risk Identification
d) Risk Retention

Answer: c

6. Insurance is a risk management technique involving
a) Risk Retention
b) Risk Avoidance
c) Loss Control
d) Risk Transfer

Answer: d

7. Restoring a policy holder to his pre-loss financial position means ______________.
a) Contribution
b) Indemnity
c) Goodwill
d) LiquidAsset

Answer: b

8. ______________ are the risk management methods
a) Insurance
b) Hedging
c) Derivatives
d) All the above

Answer: d

9. The strategy pursued by the business firms to tackle risk by spreading into a number of business is ______________.
a) Diversification
b) Centralisation
c) Risk Retention
d) Financing

Answer: a

10. A firm may seek to minimize marketing risks by undertaking ______________.
a) Credit Facilities
b) Training Salesmen
c) Market Research
d) Branch Expansion

Answer: c