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Category: IC01 PRINCIPLES OF INSURANCE – 07

IC01 PRINCIPLES OF INSURANCE – 07

Que. 1 : Q1) The full form of TPA is_______________.

   1.  a) Third Party Accounts

   2.  b) Third Party Analyst

   3.  c) Third Party Agreement

   4.  d) Third Party Administrators

Que. 2 : Q2) Which of the following statements is incorrect in respect of brokers?

   1.  a) Brokers require to undergo training before being licensed

   2.  b) Brokers are appointed by insured to take care of their interests

   3.  c) Brokers have to pass examinations before being licensed

   4.  d) Brokers should be registered companies or firms

Que. 3 : Q3) State which of the following statements is correct

   1.  a) Life insurance improves standards of living

   2.  b) Risk is uniform for all assets

   3.  c) Both the above statements are correct

   4.  d) Both the above statements are wrong

Que. 4 : Q4) Insurance business is based on

   1.  a) the theory of probability

   2.  b) law of large numbers

   3.  c) both of the Above

   4.  d) none of the above

Que. 5 : Q5) The level of risk is normally assessed in terms of

   1.  a) probability (or frequency) of a certain event happening

   2.  b) extent or severity of the event if happened

   3.  c) Both of the above

   4.  d) None of the above