IC01 PRINCIPLES OF INSURANCE - 12

Que. 1 : Q1) Which of the following is True?

   1.  a) Insurance cannot exist without a sufficiently large number of exposures to make losses predictable

   2.  b) The term pure risk describes a situation in which there is no chance of gain, but the possibility of loss or no loss only

   3.  c) Risk retention deserves serious consideration when the maximum loss potential is small

   4.  d) All of the above statements are True

Que. 2 : Q2) To which type of insurance does the principle of indemnity does not apply to ?

   1.  a) Life insurance

   2.  b) Fire insurance

   3.  c) Marine insurance

   4.  d) Miscellaneous

Que. 3 : Q3) A material fact is one that

   1.  a) contributes to the description of the risk.

   2.  b) could influence the acceptance of the risk.

   3.  c) must be disclosed by law.

   4.  d) All of the above

Que. 4 : Q4) A contract exists between insurer and proposer when

   1.  a) A proposal has been accepted by insurer.

   2.  b) A policy document has been stamped by insurer.

   3.  c) A policy document has been received by the policyholder.

   4.  d) An insurer has made another proposal.

Que. 5 : Q5) Which Indian act lays down the conditions of a valid contract and the when it becomes voidable, how it can be revoked etc. ?

   1.  a) Indian Securities Act

   2.  b) Indian Contract Act

   3.  c) Indian Stamps Act

   4.  d) Indian Partnership act