IC01 PRINCIPLES OF INSURANCE - 29

Que. 1 : Q1) The insurer being a legally constituted corporation is competent to contract for insurance ____________.

   1.  a) Only if it has invested huge money in the business initially

   2.  b) If it has collaborated with a foreign insurance company as a partner

   3.  c) Only if it has a capacity to be profitable

   4.  d) If it is licensed to transact in insurance business

Que. 2 : Q2) Which of the following statements is False?

   1.  a) An absolute assignment doesnot cancel Nomination

   2.  b) Group Insurance implies one contract covering many lives

   3.  c) Higher the age of the proposer higher would be the premium

   4.  d) Premium is a consideration for Insurance Contract

Que. 3 : Q3) Which kind of policies are related to Time or Voyage policies ?

   1.  a) Hull insurance

   2.  b) Cargo insurance

   3.  c) Fire insurance

   4.  d) Overseas Travel Insurance

Que. 4 : Q4) In whole life insurance policy, the benefit under the plan is paid only on________________.

   1.  a) Death

   2.  b) Illness

   3.  c) Survival

   4.  d) After minimum 20 years

Que. 5 : Q5) The ratio that reflects the overall profitability of an Insurance Company is

   1.  a) Expense ratio

   2.  b) Operating ratio

   3.  c) Loss ratio

   4.  d) Combined Ratio