Insurance and Risk Management

81. When the subject matter insured is destroyed wholly refers to ______________.

1. Partial loss
2. Actual total loss
3. Constructive total loss
4. Maximum loss

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82. Marine perils is also called as ______________.

1. Perils of the Sea
2. Moral Hazards
3. MarineClause
4. Marinelaws

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83. ______________ is a document which provides evidence of the contract of insurance

1. Proposal form
2. Policy form
3. Cover note
4. Certificate of insurance

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84. Insurance is a risk management technique involving ______________.

1. Risktransfer
2. Riskretention
3. Riskavoidance
4. Losscontrol

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85. Which of the following helps in Risk improvement?

1. Fire brigade
2. Salvage crops
3. Engineers who survey property to be insured
4. Ambulance

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86. The business of insurance is related to protection of ______________.

1. Savings
2. Status
3. Profits
4. Economic value of assets

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87. Loss control involves a combination of ______________.

1. effort and time
2. fund and time
3. funds effort or time
4. effort and fund

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88. An insurance company estimates its objective risk for 10,000 exposures at 10 Per cent. Assuming the probability of loss remains the same, what would happen to the objective risk if the number of exposures were to increase to 1 million?

1. It would decrease to 1 percent
2. It would decrease to 5 percent
3. It would remain the same
4. It would increase to 20 percent

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89. All of the following are social costs associated with insurance Except ______________.

1. increased cost of capital
2. the expense of doing business
3. fraudulent claims
4. inflated claims

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90. Risk of premature death is a ______________.

1. Financial Risk
2. Dynamic Risk
3. Subjective Risk
4. Personal Risk

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