Q-11- Of 400 houses costing each ₹20, 000 if on an average 4 houses are damaged in fire causing a total loss of ₹80,000 what should be the annual contribution of each house owner.
- ₹100
- ₹200
- ₹300
- ₹400
Option-2 Of 400 houses costing each Rs.20, 000 if on an average 4 houses are damaged in fire causing a total loss of Rs.80,000, Rs.200 should be the annual contribution of each house owner.
Q-12- As per Law of Large numbers, The losses of a few are shared amongst many through the mechanism of
- Biology
- Science
- Insurance
- Government
Option-3 The losses of a few are shared amongst many through the mechanism of Insurance.
Q-13- _________ refer to collection of premiums from many individuals to compensate the few who may suffer loss.
- Group
- Pooling
- Contract
- Guarantee
Option-2 Pooling consists of collecting premiums from numerous individuals to compensate the few who may suffer losses. The pooling of risk is fundamental to the concept of insurance.
Q-14- Secondary burden of risk consists of _________ and _________ one has to bear if exposed to loss situation.
- Costs, Strains
- Trials, tribulations
- Situations, Safeguards
- Circumstances, Conflicts
Option-1 The secondary burden of risk consists of Costs and Strains one has to bear if exposed to loss situation.
Q-15- _________ and _________ refer to measures to reduce chance of occurrence and measures to reduce degree of losses.
- Loss Prevention, Loss damage
- Loss Control, Loss management
- Loss advantage, Loss prevention
- Loss Prevention, Loss Reduction
Option-4 Loss Prevention and Loss Reduction refer to measures to reduce chance of occurrence and measures to reduce degree of losses.
Q-16- Cost of the risk would _________ with the probability and amount of loss.
- Vary
- Increase
- Decrease
- none of these
Option-2 Cost of the risk would increase with the probability and amount of loss. Hazard is a condition that increases the chances of a loss arising from a peril. For example, an accident may be the cause of a permanent and total disability.
Q-17- _________ means that insurer would assess and compensate only the exact amount of loss.
- Certainty
- Indemnity
- Probability
- Uncertainity
Option-2 Indemnity means that insurer would assess and compensate only the exact amount of loss. Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party.
Q-18- Proximate Cause refer to the _________ cause which set in motion a chain of events producing loss.
- Active
- Efficient
- both of above
- none of above
Option-3 both above are correct
Q-19- _________ is the maximum amount an insurance company will pay if an insured asset is deemed a total loss.
- Actual Value
- Insurance Value
- Replacement Value
- Guaranteed replacement Value
Option-2 Insurance value is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. It is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. The asset’s insured value can either be its replacement cost or its market value, depending on the insurance policy.
Q-20- The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to
- Include his parents under the policy
- Increase cover when a key life event occurs
- Maintain cover despite a fall in investment value
- Cancel a health-based exclusion after a symptom-free period
Option-2 The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to Increase cover when a key life event occurs. A guaranteed insurability rider, also called a GI rider, is a life insurance rider which allows the owner of a life insurance policy to buy additional life insurance with no underwriting. A rider is an additional benefit to a life insurance policy beyond the death benefit.
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