Insurance and Risk Management

1. The Insurance is a ______________

  1. Contract
  2. Uncertainty
  3. Peril
  4. Hazard
Correct answer: (A)
Contract

2. Losses arising due to a risk exposure retained or assured is known as ______________

  1. Risk Reduction
  2. Risk Financing
  3. Risk Retention
  4. Risk Sharing
Correct answer: (C)
Risk Retention

3. An alternative approach to the check list is ______________

  1. Threat Analysis
  2. Event Analysis
  3. Operability Study
  4. Minimum Level Analysis
Correct answer: (A)
Threat Analysis

4. The measures aimed at avoiding,eliminating or reducing the chances of loss production is covered by ______________

  1. Risk Control
  2. Risk Retention
  3. Risk Avoidance
  4. Risk Financing
Correct answer: (A)
Risk Control

5. Insurance is best suited to risk with ______________.

  1. high frequency and low loss severity.
  2. low frequency and high loss severity.
  3. minimum frequency and no loss severity.
  4. high frequency and high loss severity.
Correct answer: (B)
low frequency and high loss severity.

6. The risk manager maybe able to identify the new ventures involved in ______________.

  1. Pure risk.
  2. Group Risk.
  3. Speculative risk.
  4. Particular risk.
Correct answer: (A)
Pure risk.

7. An instrument by which a pure risk is transferred by a party other than insurer is

  1. Insurance
  2. Retention.
  3. Non Insurance Transfer.
  4. Reinsurance.
Correct answer: (C)
Non Insurance Transfer.

8. The Person whose risk is insured is called ______________.

  1. Insured
  2. merchandiser
  3. marketer
  4. Agents
Correct answer: (A)
Insured

9. That which is designed to improve the information on which decisions are take to reduce risk is ______________.

  1. Transfer
  2. Research.
  3. Costs.
  4. Deflation.
Correct answer: (B)
Research.

10. Uncertain events are broadly classified as ______________.

  1. Predictable and Unpredictable.
  2. Possible and Impossible
  3. Natural and Artificial.
  4. Rare and Continuous
Correct answer: (A)
Predictable and Unpredictable.
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