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Category: IC01 PRINCIPLES OF INSURANCE – 09

IC01 PRINCIPLES OF INSURANCE – 09

Que. 1 : Q1) Which of these options is INCORRECT ?

   1.  a) Methods of retention and transfer of risk are mutually exclusive

   2.  b) Some risks have to be transferred and some have to be retained

   3.  c) All risks cannot be retained

   4.  d) Even out of what is transferred to insurers, retention’s is possible through system of ‘excess’

Que. 2 : Q2) What are the consequence of destitution of families and poor people ?

   1.  a) It cost the nation by way of subsidy and doles

   2.  b) There is a large growth in population

   3.  c) Vagaries in the behaviour of children

   4.  d) All of the above

Que. 3 : Q3) When applying for insurance, the applicant must tell the truth. This is a legal principle known as:

   1.  a) agency.

   2.  b) indemnity.

   3.  c) insurable interest.

   4.  d) utmost good faith.

Que. 4 : Q4) A footballer who is voted as the European Footballer of the year does not take an insurance policy on his legs and continues to play as before. This is a case of

   1.  a) Risk transfer

   2.  b) Risk avoidance

   3.  c) Risk retention

   4.  d) Risk reduction

Que. 5 : Q5) Which of the following is an ethical practice?

   1.  a) Embezzlement of Funds by employees of Banks and Financial Institutions

   2.  b) Maintaining False Accounts and dishonest audit certification for personal gains

   3.  c) Misuse of official authority to promote personal gain

   4.  d) Disclosing all facts to the customer to enable him to make an informed decision