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Category: IC01 PRINCIPLES OF INSURANCE – 01

IC01 PRINCIPLES OF INSURANCE – 01

Que. 1 : Q1) Which of the following are regarded as essential elements in any valid simple contract? (A) offer (B) acceptance (C) consideration (D) capacity of the parties to contract

   1.  a) (A) and (B) only

   2.  b) (A) and (C) only

   3.  c) (A) , (B) and (C) only

   4.  d) (A) , (B) , (C) and (D)

Que. 2 : Q2) The expression Ceding is used

   1.  a) When Reinsurer passes on the business to another reinsurer

   2.  b) When Primary Insurer passes on the business to reinsurer

   3.  c) When Primary Insurer passes on the business to another Insurer

   4.  d) None of the above

Que. 3 : Q3) Risk Retention and Risk Transfer are_____________techniques.

   1.  a) Risk Management

   2.  b) Risk Financing

   3.  c) Risk Retention

   4.  d) Risk Identification

Que. 4 : Q4) Insurable interest refers to ____________

   1.  a) Financial interest of the person in the asset to be insured

   2.  b) The asset which is already insured

   3.  c) Each insurers share of loss when more than one company covers the same loss

   4.  d) The amount of the loss that can be recovered from the insurer

Que. 5 : Q5) Select the expanded form of TAC

   1.  a) Tariff Action Committee

   2.  b) Tariff Advisory Committee

   3.  c) Tariff Advisory Cell

   4.  d) Tariff Advising Customer