IC01 PRINCIPLES OF INSURANCE - 31

Que. 1 : Q1) If the cost of damage is being met using internal resources or funds, How is the risk being managed?

   1.  a) Avoidance or Prevention

   2.  b) Transfer

   3.  c) Reduction

   4.  d) Retaining

Que. 2 : Q2) Statement A : A Whole Life Policy is a Term Insurance Policy without the limitations of a period. Statement B : Term Insurance Policy usually do not offer Survival benefit

   1.  a) Only Statement A is True

   2.  b) Only Statement B is True

   3.  c) Both Statements are True [This is the Right Answer]

   4.  d) Both statements are False

Que. 3 : Q3) Which of the following is part of a policy document?

   1.  a) The heading

   2.  b) The preamble

   3.  c) The Operative clause

   4.  d) All of the above [This is the Right Answer]

Que. 4 : Q4) The transfer of risk from one insurance company to another is known as___________.

   1.  a) Retention of risk

   2.  b) Migration of risk

   3.  c) Re-insurance [This is the Right Answer]

   4.  d) Minimisation of risk

Que. 5 : Q5) Which of the following is NOT a peril?

   1.  a) Burglary in a godown

   2.  b) Fire caused by a shortcircuit

   3.  c) Death in an accident [This is the Right Answer]

   4.  d) Drought caused by failure of monsoon