Q-11- Risk Theory is the ___________
- a Mathematical model
- documents available of risk analysis
- model made on the basis of logical expressions
- theory developed on the basis of hypothecations
Option-1 Risk Theory is the Mathematical models to quantify objective risk.
Q-12- Risk Theory applies to Risk Management in two areas of applications
- Finance & Statistics
- Marketing & Finance
- Marketing & Statistics
- Information Technology & Finance
Option-1 Risk Theory applies to Risk Management in two areas of applications i.e. Finance & Statistics.
Q-13- Total Loss reserve consists of
- Case reserves assigned to specific claims
- A provision for claims that reopen after they have been closed
- A provision for claims that have been reported but have not yet been submitted
- All of above
Option-4 Total Loss reserve consists provision of all of above reserves.
Q-14- A Loss reserve can be divided into
- known claims
- unnown claims
- both above
- none of above
Option-3 A Loss reserve can be divided into Known claims & Unknown claims.
Q-15- IBNR Means
- Insured but not rated
- Insured but not reported
- Incurred but not reported
- Interruption of business not reported
Option-1 IBNR refers to claims that have been incurred but not reported to insurer.
Q-16- What is Report date?
- the date on which loss occured
- the date on which claim recorded in books
- the date on which claim reported to Insurer
- the date on which claim reported to Insured
Option-3 Report date is the date on which claim first reported to the Insurer.
Q-17- What is Valuation Date?
- the date on which the loss is evaluated
- the date on which the loss liability estimate is made
- the date on which the loss liability evaluation is made
- the date on which the loss liability evaluation is decided
Option-3 Valuation date refers to the date on which the loss liability evaluation is made.
Q-18- Required Loss reserve is
- is the reserve created in books of Insurer
- is the reserve created in books of Insured
- is the amount that must ultimately be paid to settle all claims
- is the approx. amount that is equired to maintained always for unexpected risk all time
Option-3 required Loss reserve is the amount that must ultimately be paid to settle all claims.
Q-19- Revival of Policy means
- revival of policy by assigning to some other person
- revival of policy by extending premium payment term
- restoration of discontinued policy due to non-payment of premium
- restotation of policy by adding more features by payment of extra premium
Option-3 Revival of policy means restoration of discontinued policy due to non-payment of premium.
Q-20- What is Premium allocation charge?
- a percentage of premium invested to less risky fund
- a percentage of charge levied at time of premium receipt
- a percentage of premium levied on each premium received
- a percentage of premium charged towards donation to community development services
Option-2 Premium allocation charge is a percentage of charge levied at time of premium receipt.
These Insurance GK questions are based on various new terms under different policies in form of Insurance quiz and answers.