Insurance MCQ Daily-04

Insurance MCQ daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.   

These 20 Insurance MCQ’s covers General and Life Insurance insurance questions in detail.

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Q-1- This policy covers all risks to the ship and its cargo while the ship is at a particular port ________

  1. Time policy
  2. Voyage policy
  3. Floating policy
  4. Portrisk Policy

Option 4 Port risk insurance or policy is coverage for ships in port for a lengthy stay and/or those that are under repair. It is a type of coverage afforded a vessel that is laid up for an extended time period, normally in excess of 30 days. Coverage is provided for both physical damage and protection and indemnity.

Q-2- A complete proposal form contains information about _________

  1. Moral hazard
  2. Physical hazards
  3. Personal history of proposer and identify of the property insurance
  4. All of the above

Option-2 Physical hazards

Q-3- Which of the statements is correct?

A. Insurance is a transfer of risk mechanism.

B. Insurance gives physical protection to assets.

  1. Statement A
  2. Statement B
  3. Both the statements
  4. Neither of the statements

Option-1 Insurance is a transfer of risk mechanism.

Q-4- The process of reducing the level of risky activities firstly affect the frequency of losses is the strategy of ________.

  1. Hedging
  2. Retention
  3. Risk avoidance
  4. Other contractual risk transfer

Option-3 Risk avoidance

Q-5- . Cost of risk has the following components _________

  1. Cost of Expected Losses and Cost of Control of Loss
  2. Cost of Expected Losses and Cost of Loss Financing
  3. Cost of Control of Loss and Cost of Loss Financing
  4. Cost of Expected Loss, Cost of Control of Loss Cost of Financing, Cost of Residual Uncertainty

Option-4 Given statement is TRUE.

Q-6- The Principle of indemnity does not apply to ___________

  1. Burglary insurance
  2. Fire insurance
  3. Marine insurance
  4. Life and Personal Accident insurance

Option-4 Principle of indemnity does not apply to Life and Personal Accident insurance.

Q-7- The strategy adopted bythe business firms to handle risk by spreading into a number of business is called _________

  1. Risk Financing
  2. Risk Retention
  3. Risk Diversification
  4. Risk Centralisation

Option-2Risk Diversification

Q-8- From below which are the risk management methods

  1. Hedging
  2. Insurance
  3. Derivatives
  4. All the above

Option-4Hedging, Derivatives and Insurance all are the risk management methods.

Q-9- Insurance is a risk management technique involving

  1. Loss Control
  2. Risk Transfer
  3. Risk Retention
  4. Risk Avoidance

Option-4 Risk Transfer is the one of Risk Management technique.

Q-10- The foundation for risk Management is provided by ________

  1. Risk Control
  2. Risk Analysis
  3. Risk Retention
  4. Risk Identification

Option-4 Risk Identification is the foundation of Risk management.

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