Insurance and Risk Management Questions and Answers Part-6

1. The cause of loss or a contingency that may cause a loss due to nature is known as ______________
a) Hazard
b) Peril
c) Risk
d) Uncertinity

Answer: b

2. The risk which directly affects the individual's capability to earn income is called ______________
a) Personal Risk
b) Risk Financing
c) Risk Retention
d) Risk Sharing

Answer: a

3. Type of Risk Management are ______________
a) Risk Retention,Risk Analysis,Risk Financing
b) Risk Analysis,Risk Control,Risk Financing
c) Risk Control,Risk Retention,Risk Avoidance
d) Risk Analysis,Risk Control,Risk Financing

Answer: d

4. The Risks which have some financial impact from the part of risk management are ______________
a) Dynamic and Speculative Risk
b) Pure and Speculative Risk
c) Pure and Static Risk
d) Personal and Static Risk

Answer: b

5. The measures aimed at avoiding, eliminating or reducing the chances of loss producing events is covered by ______________.
a) Risk Avoidance
b) Risk Control
c) Risk Evaluation
d) Risk Financing

Answer: b

6. Identification of sources of hazard will have to be done by the ______________.
a) Production manager
b) Risk manager
c) Finance manager
d) General manager

Answer: a

7. The expected value of losses varies directly with the ______________.
a) time period
b) financial period
c) fixed period
d) fluctuating period

Answer: a

8. The number of elements of uncertainty in most type of events are ______________.
a) Three
b) Two
c) One
d) Five

Answer: b

9. Personnel risk in a firm depends upon the ability integrity and enthusiasm of ______________.
a) Creditors
b) Debtors
c) Government
d) Management and Employees

Answer: d

10. Except life assurance the maximum term of other insurance is ______________.
a) twelve months
b) twenty four months
c) six months
d) thirty six months

Answer: a