Insurance MCQ Daily-19

Insurance MCQ daily is very useful to all Insurance aspirants who want to make Insurance a successful career.   

Insurance Daily MCQ is very helpful to all those who are preparing for various competitive exams. This MCQ will certainly add value to their Insurance learning. Practice it daily with us and get a competitive advantage over your competitors.

These 20 Insurance MCQ’s cover Life Insurance, Burglary insurance, and new terms like HLV, etc.

The InsuranceGK team is committed to making available all possible multiple-choice questions from various sources to visitors of this portal.

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Q-1- Occupation is important for risk classification because of ______

  1. Income earned by individual
  2. Tension, stress and worries given by workplace
  3. Damage caused by pollution at the workplace
  4. Both 2 and 3

Option-4 All these factors affect risk category for underwriting purpose.

Q-2- The Basis of risk is

  1. Liability
  2. Insurance
  3. Uncertainity
  4. Possibility of Loss

Option-2 Uncrtainity is the basis of risk.

Q-3- Which of the following is an example of a hazard?

  1. Fire
  2. Flood
  3. Vandalism
  4. Slippery Floor

Option-4 Slippery Floor is an example of hazard.

Q-4- To indemnify means to

  1. To put in prior loss condition
  2. make financial provisions for dealing with potential losses
  3. put aside funds to pay for losses reported but not yet paid
  4. transfer risk to someone who has better financial resources and can withstand loss

Option-1To indemnify means to put in prior loss condition.

Q-5- Which of the following contained one of the earliest applications of insurance principles?

  1. Magna Carta
  2. Napoleonic Code
  3. Charter of London
  4. Code of Hammurabi

Option-4 The earliest applications of insurance principles is the code of Hammurabi.

Q-6- To deterine the premium required, actuaries apply the principle derived from

  1. Rating
  2. Underwriting
  3. the size of the sample
  4. the law of averages and the theory of probability

Option-4 Actuaries apply the principle derived from the law of averages and the theory of probability.

Q-7- Ratemaking is

  1. related to the character of the insured
  2. a request for insurance, which can be oral or written
  3. the process of establishing rates for each class of insurance
  4. applying the established rate to a specific items that are to be insured

Option-3 The Ratemaking is the process of establishing rates for each class of insurance.

Q-8- Risk is dealt with in a number of ways

  1. eliminate and transfer
  2. identify, reduce an retain
  3. identify, measure and control
  4. eliminate or reduce, assume or retain and transfer

Option-4 Risk is dealt by eliminate or reduce, assume or retain and transfer.

Q-9- In vehicle insurance, with regards to Accident benefits ‘the insured‘ may include

  1. The named Insured
  2. Any person who is involved in an accident with the insured automobile
  3. Both of the above
  4. None of the above

Option-3 Both of the above.

Q-10-  With regards to a policy, which of the following is not true ?

  1. It does not expire
  2. It is written evidence of a policy
  3. It contains terms and conditions of the policy
  4. It contains terms and conditions of the policy

Option-1 It does not expire

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