Q-11- The principle of average applies when the value is ________in the proposal
- Negligible
- Overstated
- Understated
- Only sentimental
- Not ascertainable
Option-3 Principle of Average applies in the case of understated insurance.
Q-12- In a broad way the term ‘Risk’ includes
- Effect on life of Society
- Damage to machinery and property
- Impact on the health or life of a person
- Leakage of toxic products into the atmosphere
- All of the above
Option-5 The term risk include all of the stated conditions.
Q-13- Fidelity Guarantee Policies cover losses due to fraud by _________
- Suppliers
- Borrowers
- Financiers
- Customers
- Employees
Option-5 Fidelity Guarantee insurance covers losses due to fraud by employees.
Q-14- The main purpose of having Life insurance policies is
- As an avenue for compensate loss
- As an avenue for long-term/short-term investment
- As a governmental programme for reducing poverty
- As a medium for getting income tax benefits from savings
- None of the above
Option-5 The main purpose of life insurance is to provide a financial benefit to dependants upon premature death of an insured person.
Q-15- An Actuary is main function is to
- Make an exact forecast of the future liabilities of policies
- Make a reasonable forecast of the future liabilities of policies
- Calculate the premium required to cover a risk on a long-term basis
- Find the probability of an insured event to happen in non-life policies
- All the above statements are incorrect
Option-1 An Actuary forecasts the future liability of policies, which further decides the premium payable under the policy.
Q-16- The term GA in Insurance means
- General Average
- General Assurance
- General Adjustment
- Guaranteed Average
- Guaranteed Assurance
Option-1 The term GA refers ‘General Average’ in insurance.
Q-17- The term ‘Family Floater’ in Insurance used in
- Accidental injury
- Health insurance
- Consequential loss
- Marine Partial Loss
- Property insurance
Option-2 The term Floater in Insurance related with Health Insurance insurance.
Q-18-When an insurance agent collects premium from the policyholder and remits the same to the insurer’s office, he is acting as an agent of ______________
- IRDA
- the broker
- the general public
- the Insurance Company
Option-4 Insurance agent acts as an agent of the Insurance Company.
Q-19- Name of policy where the policyholder makes a one-time payment of premium, is known as a ___________
- Annual policy
- Half-yearly policy
- Money-back policy
- Single premium policy
- Salary Savings Scheme policy
Option-4 Policy whose premium paid one time known as Single Premium Policy.
Q-20- _______may be described as a social device to reduce or eliminate risk of loss to life and property.
- Loan
- Saving
- Insurance
- Investment
Option-3 Insurance is described as a social device to reduce or eliminate risk.