Insurance and Risk Management

51. Assignment of life policy means ______________.

1. Transferring rights to the assignee
2. Policy holder is entitled to the paid up value
3. Paid up value is always higher than surrender value
4. Value payable on assured death or maturity

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52. Risk insured against death is a contract of ______________.

1. Assurance
2. Agreement
3. Indemnity
4. Caveat Emptor

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53. The risk which arises because of change in major economic, social, cultural and political factors are ______________.

1. ParticularRisk
2. Fundamental Risk
3. Speculative Risk
4. Dynamic Risk

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54. When an event is stated to be possible, it has a probability between ______________.

1. Zero and One
2. Zero or One
3. None of these
4. Both of the above

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55. If the premium loading is zero then purchasing insurance ______________

1. does not change the persons expected wealth
2. changes the persons expected wealth
3. increases the variability of wealth
4. no change in expected wealth

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56. Insurance cover ______________.

1. Protect assets
2. Prevents loss
3. Reduces the impact of loss
4. Insurances immortality

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57. Taylor Tobacco Company is concerned that the company may be held liable in a court of law and forced to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses is known as ______________.

1. moral hazard
2. particular risk
3. speculative risk
4. legal hazard

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58. Bancassurance means ______________.

1. Selling financial services
2. general liability insurance
3. Selling banking products
4. Selling Insurance Products

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59. Credit Risk is high in case of ______________.

1. Companies
2. Partnership
3. Financial Institutions
4. None of these

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60. A bancassurance concept originated in ______________.

1. England
2. Finland
3. France
4. Spain

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