1. The principles of indemnity does not apply to ______________.
a) Burglary insurance
b) Fire insurance
c) Marine insurance
d) Life and Personal Accident insurance
2. The risk that arises because of magnitude of cash flow due to change in output and input prices is
known as ______________.
a) Credit risk
b) Particular risk
c) Business risk
d) Price risk
3. Cost of risk has the following components ______________.
a) Cost of Expected Losses and Cost of Control of Loss
b) Cost of Expected Losses and Cost of Loss Financing
c) Cost of Control of Loss and Cost of Loss Financing
d) Cost of Expected Loss, Cost of Control of Loss Cost of Financing, Cost of Residual Uncertainity
4. If RMIS has the problem of incompatibility of software then the remedy is to provide
______________.
a) solid vendor account team
b) internal access to system expert
c) clear and comprehensive specifications
d) financial check
5. To avoid RMIS being obsolete provide ______________.
a) solid vendor account team
b) internal access to system expert
c) standard software configuration
d) clear and comprehensive specifications
6. The process of reducing the level of risky activities firstly affect the frequency of losses is the strategy
of ______________.
a) Risk avoidance
b) Retention
c) Hedging
d) Other contractual risk transfer
7. Which of the statements is correct? a. Insurance is a transfer of risk mechanism. b. Insurance gives
physical protection to assets.
a) Statement A
b) Statement B
c) Both the statements
d) Neither of the statements
8. A complete proposal form contains information about ______________.
a) Moral hazard
b) Physical hazard
c) Personal history of proposer and identify of the property insurance
d) All of the above
9. This policy covers all risks to the ship and its cargo while the ship is at a particular port
______________.
a) Voyage policy
b) Floating policy
c) Time policy
d) Portrisk Policy
10. _______________ policy matures on the assured death or on his attainment of a particular age
whichever occurs earlier.
a) Endowment
b) Money back
c) Joint life
d) Single premium