Insurance and Risk Management

141. A person who is risk averse ______________

  1. accepts the risk no matter what
  2. do not accept the risk as a loss hurts them more than gain benefits them
  3. tries to control the loss
  4. avoids insurance
Correct answer: (B)
do not accept the risk as a loss hurts them more than gain benefits them

142. The concept of insurance is ______________.

  1. to share the losses by many
  2. to make money out of death.
  3. to earn interest
  4. to earn a status
Correct answer: (A)
to share the losses by many

143. Insurance penetration in India in 2001 was

  1. 1.93
  2. 2.32
  3. 2.71
  4. 2.25
Correct answer: (C)
2.71

144. Risk means ______________

  1. economy
  2. possibility of loss
  3. .reduction of anxiety
  4. . meeting externally imposed obligations
Correct answer: (B)
possibility of loss

145. A person who dislikes risk is known as ______________

  1. Risk lover
  2. Risk Averse
  3. Risk Neutral
  4. Insurer
Correct answer: (B)
Risk Averse

146. The two Aspects of risk Managers are ______________

  1. Record keeping and reporting of the activities
  2. Maintaining accounts and reporting
  3. Carry out analysis and control
  4. Marketing
Correct answer: (A)
Record keeping and reporting of the activities

147. The type of reinsurance that forms individual large losses of risk is called as ______________.

  1. Proportional quota share
  2. Excess of loss per event basis
  3. Stop loss
  4. Facultative
Correct answer: (A)
Proportional quota share

148. Organisations are mainly concerned with managing

  1. Pure Risk
  2. Speculative Risk
  3. Personal Risk
  4. None of the above
Correct answer: (A)
Pure Risk

149. That which take advantage to the law of large numbers is ______________

  1. Risk retention
  2. Combination
  3. Hedging
  4. Inflation
Correct answer: (B)
Combination

150. Fire insurance can be taken in respect of ______________.

  1. movable properties only
  2. immovable properties
  3. movable and immovable
  4. persons only
Correct answer: (C)
movable and immovable
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