Insurance and Risk Management Questions and Answers Part-9

1. The number of prime elements of risk analysis is ______________.
a) one
b) Two
c) Three
d) Four

Answer: b

2. The identification analysis and economic control of those risk which can threaten the assets or earning capacity of an enterprise is known as ______________.
a) Business Management
b) Risk Management
c) Financial Management
d) Strategic Management

Answer: b

3. The uncertainty reduced through diversification and investing in information is known as ______________
a) Cost of Residual Uncertainty
b) Cost of Loss Financing
c) Cost of Loss Control
d) Cost of Internal Risk Reduction

Answer: d

4. If RMIS shows inflexibility of system then provide ______________.
a) solid vendor account team
b) clear and comprehensive specifications
c) internal access to system expert
d) standard software configuration

Answer: c

5. Risk management information is not useful in one of the following ______________.
a) Reporting
b) Hedging
c) Claim adjustment process reviews
d) Derivatives

Answer: b

6. Which of the following is the last step in risk management process ______________.
a) Insurance
b) Review
c) Risk evaluation
d) Loss prevention

Answer: a

7. The Principle of Indemnity does not apply to ______________.
a) Burglary Insurance
b) Fire Insurance
c) Marine Insurance
d) Life and personal accident insurance

Answer: d

8. Except life assurance the maximum term of other insurance is ______________.
a) 12 months
b) 24 months
c) 6 months
d) 36 months

Answer: a

9. ______________ are those terms, which are written on the policy.
a) Express Warranties
b) Implied Warranties
c) Memorandum Warranties
d) Valuation Clause

Answer: a

10. ______________ policy issued on the basis of the number of persons assured
a) Annuity policy
b) Multiple life policy
c) Single life policy
d) Level of premium policy

Answer: b