IC01 (LICENTIATE) Principles of Insurance - 05

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Q 1.The agreements between insurers and reinsurers are known as ____.
 Pool arrangements
 Excess of loss arrangements
 Quota shares
Q2.In life insurance, the premium paid at the commencement of policy is referred to as ____ premium and the subsequent premiums that are paid are called the ____ premium.
Commencement, Later
Renewal, First
Single, Subsequent
First, Renewal
Mode of payment, limited payment
Q3.Which body is not a work of the Insurance Act 1938?
 Life insurance council
 Tariff advisory committee
 General insurance council
 Insurance association
 Consumer protection act
Q4.If the policyholder has had a claim and it exceeds a specified limit, the premium is increased. This increase or loading on the premium is called __
 No Claim Bonus
 New contract
Q5.Which of these policies is/are freely assignable?
 Marine Cargo policies
 Marine Hull policies
 Floater policies
 Valued policies
 All of the above
Q6.What is the role of a TPA?
 To get new business for the insurer
 To scrutinize the proposal forms
 To settle medical and hospital expenses on behalf of the insurer
 To calculate the premium
 To issue the policy documents
Q7.Risk management as a subject of study evolved formally _____.
 as a function of debt collectors
 as a function of financial lending
 as a function of business enterprise.
as a function of investment organization
 All of the above
Q8.Insurance cannot compensate for __.
 Losses due to act of God
Non-Economic losses
 Economic losses
 Financial losses
 All of the above
Q9.The consideration which the proposer pays to the insurance company for bearing the risk on his behalf is known as ____.
 Policy fees
 Enrollment fee
Q10.Which risks cannot be measured in monetary terms?
 Dynamic Risks
 Speculative Risks
 Financial Risks
Non-Financial Risks
 Stock Market Risks

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