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Q1. What is expected of an agent when she detects a moral hazard?
   a) Continue with the insurance as before
   b) Report the same to the insurer
   c) Ask for a share in the claims
   d) Turn a blind eye
Q2.The Process of Determining: Whether a Risk, offered for Insurance, is Acceptable; and if so, At What Rate, Terms, and Conditions, the Insurance- Cover will be Accepted, is known as ___.
   a) Cover-Letter
   b) Underwriting
   c) Bond
   d) Agreement
Q3.In India ______ insurance is mand atory.
   a) Motor third party liability
   b) Fire insurance for houses
   c) Travel insurance for domestic travel
   d) Personal accident
Q4.Which of the Following Statements, is/are True, with Regard to Premium? I. Section 64 VB of Insurance Act, ensures that, Only When the Premium is Received by the Insurance Company, a Valid Insurance-Contract can be Completed. II. Section 64 VB of the Insurance Act, ensures that, Only When the Premium is Received by the Insurance Company, the Risk can be Assumed by the Insurance Company.
   a) Only Statement-I is True.
   b) Only Statement-II is True.
   c) Both: Statement-I and Statement-II, are True.
   d) Both: Statement-I and Statement-II, are False.
Q5.Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance Ombudsman?
   a) Insurance Ombudsman has National jurisdiction
   b) Insurance Ombudsman has State jurisdiction
   c) Insurance Ombudsman has District jurisdiction
   d) Insurance Ombudsman operates only within the specified territorial limits
Q6.Which of the following question is common to all proposal forms?
   a) Proposers previous insurance
   b) Proposers present insurance
   c) Past losses
   d) All of the above
Q7.What is meant by customer lifetime value?
   a) Sum of costs incurred while servicing the customer over his lifetime
   b) Rank given to customer based on business generated
   c) Sum of economic benefits that can be achieved by building a long term relationship with the customer
   d) Maximum insurance that can be attributed to the customer
Q8.Personal accident cover is only
  a) Whilst traveling abroad
  b) Whilst traveling in India
  c) For traveling both in India and abroad
  d) Whilst traveling in India and neighboring countries
Q9.The Event, whose Occurrence, actually leads to the Loss, is known as a ____.
   a) Peril
   b) Risk
   c) Un-Certainty
   d) Hazard
Q10.In the insurance context risk retention indicates a situation where____.
   a) possibility of loss or damage is not there
   b) loss producing event has no value
   c) property is covered by insurance
   d) one decides to bear the risk and its effects

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