IC01 PRINCIPLES OF INSURANCE - 24

Que. 1 : Q1) Why should one keep extra spare of important units in a factory ?

   1.  a) Its cheaper to buy in bigger quantities so as to save costs

   2.  b) It helps training new recruits about how they operate

   3.  c) It helps in building similar units in future

   4.  d) It helps in reducing delays in repairs to the minimum and thereby cut losses

Que. 2 : Q2) The amount an insured must bear in any claim or contribute to a claim before an insurer pays the remaining amount is called

   1.  a) Deduction

   2.  b) Franchise

   3.  c) Excess

   4.  d) Malus

Que. 3 : Q3) A policy holder transfers their rights under a policy to another person. This process is called

   1.  a) Nomination

   2.  b) Assignment

   3.  c) Surrender

   4.  d) Deferment

Que. 4 : Q4) The act of buying insurance is an act of:

   1.  a) Risk Retention

   2.  b) Risk Transfer

   3.  c) Risk avoidance

   4.  d) all of the above

Que. 5 : Q5) Which of the following is NOT a part of the policy document?

   1.  a) The heading.

   2.  b) The preamble

   3.  c) The objective clause

   4.  d) The operative clause