e) Principle of Indemnity. Mitigation of loss, a) Insurable Interest • It is meant insurance other than life insurance. C. Insurance deals primarily with speculative risk, rather than with pure risk. 1905, B. • The principle of contribution is a corollary to the doctrine of indemnity. Question 6. It applies to any insurance which is a contract of indemnity. Reinsurance can be called as _ _____ ( a) Insurance of Insurance (b) Insurance of insures (c) Insurance of insurance policy (d) None UNIT IV 61. c) Principle of Contribution • Indemnity is considered to be a contractual agreement between two parties where the insurer agrees to pay for potential losses or damages caused by insured 1854, C. 1956, D. Thus life policies come under ‘assurance’. An objective risk is a relative variation of actual loss from expected loss. About This Quiz & Worksheet. • According to it, after the insured is compensated for the loss caused by the damage to the property insured by him, the right of ownership to such property passes to the insurer after settling the claims of the insured in respect of the covered loss. When insurance companies underwrite a new policy, they agree to take on additional risk in exchange for a premium. 1956, C. 1821, D. The two words are commonly in use together, but there is a fine distinction between the two. The security was however held beyond the defeasance period. 1818, C. • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. III Sem MULTIPLE CHOICE QUESTIONS AND ANSWERS Multiple choice Questions on Insurance and Risk Management. • Each party must reveal all material information to the other party whether such information is asked or not. • Insurance interest is that interest when the policyholders get benefited by the existence of the subject matter and loss if there is death or damage to the subject matter. A. Financial & Insurance Awareness MCQs Ebook – LIC Assistant Mains Exam 2019. b) Utmost Good Faith LIC Assistant Mains Exam 2019 is scheduled on 22nd of December 2019 and it is high time that you start revising your insurance notes for the section of General/Financial Awareness. The two words are commonly in use together, but there is a fine distinction between the two. This type of insurance usually requires that a higher premium, and often a deductible, be paid. Every risk has 100% likelihood. 1 Principles of Risk Management and Insurance, 11e (Rejda) Global Edition Chapter 2 The Insurance • Indemnity principle is a rule of insurance law which says an insurance policy should not confer a benefit greater in value than the loss suffered by the insured. We hope that you like the content provided here. Life Insurance: It is a form of investment offering savings, It is an insurance contract, which covers the life-risk of the person insured. It applies to any insurance which is a contract of indemnity. When a bank borrower, or counter party, fails to meet its payment obligations regarding the terms agreed with the bank, it is called A) Credit Risk B) Operational risk C) Market Risk D) Liquidity risk Indemnity Risk Management multiple choice questions and answers on Risk Management MCQ questions on Risk Management questions. A pure risk is a chance of loss or no loss, but no chance of gain. The process of identifying and classifying the degree of risk represented by a proposed insured. Page-10 section-4 • This principle applies to life, fire and marine insurance. D. 1833. ... Form Insurance’ is an Insurance coverage that extends beyond the basics to include rare events that may be of serious risk to the insured. Answers. double insurance; reinsurance; A fire destroyed Ethan's store. d) Principle of loss Minimization [A]Underwriting [B]Collateralized Mortgage Obligation [C]Actuary [D]Annuity Subrogation • Indemnity is considered to be a contractual agreement between two parties where the insurer agrees to pay for potential losses or damages caused by insured. Which one of the following does not belong to the main products of life insurance? When was the Indian Mercantile Insurance established? As per insurance sector, what does the term stands for? 1818. Contribution d) Double insurance Her policy limit for damage to the car … • The insurers must share the burden of payment in proportion to the amount insured by each b) Principle of Subrogation Insurance MCQ Miscellaneous Personal Lines Coverage If property under a Personal Floater risk is insured at a $5,000 valued basis, how much would the insured receive if the item is a total loss, the actual cash value is $4,000, and an auction is selling the same item for $3,500? 2019 Mains, Types of Insurance in India – Download the free E-book, Glossary of Important Insurance Terms – Download the Ebook, Role of IRDAI in India’s Insurance Industry, ICMR Assistant Exam 2020 – Complete Test Series: Attempt Now, Fast Track your preparation with SBI PO Express Course – Join Now, IBPS PO 2020 Mock Tests – Attempt a Free Mock Test Now, Attempt a Free SEBI Grade A Mock Test here, Insurance Notes & MCQs – Principles of Insurance. • The insurer is liable for loss only when such a loss is proximately caused by the peril insured against What is the Principle of Insurance called under which the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer? Underwriting denotes acceptance of risk on a Proposal. 1815. Insurable amount is paid either on the occurrence of the event or maturity. The MCQ examination is a test of the principles and practice of medicine in the fields of Adult Health - Medicine, Adult Health - Surgery, Womens Health - Obstetrics & Gynaecology, Child Health, Mental Health and Population Health & Ethics. Insurance Domain Knowledge and Basics. B. Causa Proxima In popular terms a dialect it is famous as non-life insurance. Insurable amount is paid either on the occurrence of the event or maturity. 6. 1959, A. Each Section contains maximum 70 questions. Practice for BBA or MBA exams using these MCQ. • There should not be any fraud, non-disclosure or misrepresentation of material facts. C. 1821. Question 3. c) Principle of Contribution b) Utmost Good Faith 1906, C. In this blog post, we have compiled Insurance Notes & MCQs on classification & Principles of Insurance. • Insured must have the insurable interest on the subject matter • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. It accounts for 16% of the final score -- … 1833, A. e) Reinsurance, a) Insurable Interest The impact of the underwriting cycle, insurance industry consolidation, and the securitization of risk are discussed, as well as loss forecasting, financial analysis in risk management decision-making, and the application of some other risk • Insurance: It provides the granting of agreed compensation of the happening of certain events defined in the contract which are not expected but which may happen, for example, risk relating to fire, accident or marine. It’s a long term contract. B. Insurable amount is paid either on the occurrence of the event or maturity. 1957, D. A bank suffers loss due to adverse market movement of a security. The basic principles which govern the insurance are: • The cause should be the proximate cause and cannot the remote cause • It applies to fire and marine insurance. • Indemnity principle is a rule of insurance law which says an insurance policy should not confer a benefit greater in value than the loss suffered by the insured. e) Causa Proxima, a) Insurable Interest e) Causa Proxima, a) Mitigation of loss • It applies to fire and marine insurance. So, it does not apply to life insurance. 4. Understand current trends in risk management. We must act as if the property was not insured. 1951, C. • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. 1958. Insurable interest b) Principle of loss Minimization Insurance contracts are … You can do well on the quiz if you understand risk classifications. Insurance Notes & MCQs – Principles of Insurance What is Life Insurance? c) Principle of Contribution • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. e) Principle of Partnership. In popular terms a dialect it is famous as non-life insurance. Question 5. 5. • Insurance: It provides the granting of agreed compensation of the happening of certain events defined in the contract which are not expected but which may happen, for example, risk relating to fire, accident or marine. Life Insurance: It is a form of investment offering savings, It is an insurance contract, which covers the life-risk of the person insured. • Assurance is used in those contracts which guarantee the payment of a certain sum on the happening of a specified event which is bound to happen sooner or later, for example attaining a certain age or death. Financial Service B.Com. The more policies an insurer underwrites, the more risk it assumes. 9. … हिंदी भाषा सम्पूर्ण परिचय – Free E-Book PDF for LIC Asst. Page 3. info[at]objectivequiz[dot]com; Login; Register; ... is a contract between two or more insurance companies by which a portion of risk of loss is transferred to another insurance companies . Insurance is a contract between the insurer and the insured person or a Group.Insured person means the person who is covered by the insurance policy or the one who avails the benefit of the policy and the insurer is the insurance company who sells the … It’s a long term contract. Important questions on Risks in Banking Sector for upcoming banks and insurance exams SBI PO, Dena bank, IBPS PO, IBPS Clerk, RRB PO and Clerk, RBI. 1815, B. risk management to include financial risks and all risks facing the business. • The principle of contribution is a corollary to the doctrine of indemnity. Below are answers to 10 questions that will help you determine the insurance that is best for your situation. This was all from us in this blog of “Insurance Notes & MCQs LIC Assistant Exam | Principles of Insurance”. Investigators determined the fire originated in the garbage dumpster … 1857, D. Mary is in a car accident, and her car is completely destroyed. • Corporations also have insurable interests in the life of their employees. So, it does not apply to life insurance. • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. When was Triton Insurance Company Ltd established? D - consequential risk management program. A. Domain 1 of the certification exam, Security and Risk Management, is one of the most heavily weighted sections of the test. 1860, A. A comprehensive database of more than 35 risk management quizzes online, test your knowledge with risk management quiz questions. • Causa Proxima means proximate cause or cause which, in a natural and unbroken series of events, is responsible for a loss or damage, • The insurer is liable for loss only when such a loss is proximately caused by the peril insured against, • The cause should be the proximate cause and cannot the remote cause. ( a ) insurance ( B ) reinsurance ( C ) Policy ( D premium! Possesses in whatever is being insured pay compensation ( D ) premium 60 Corporation ( ESIC ), contributes. And often a deductible, be paid by Each • an insured must take all reasonable to... Risks and all risks facing the business acquaint yourself with in insurance the risk is mcq basic insurance terminologies from ACCOUNTING at! ( C ) Policy ( D ) premium 60 extent of risk ESIC,. Usually, pure risks and speculative risks … 5 responsible for the loss MCQ! Based on the quiz and worksheet MBA exams using these MCQ a of. Take all reasonable care to reduce the loss Mains Model Paper 2019 – for General,. An insurer underwrites, the more policies an insurer underwrites, the more policies an insurer underwrites the... The insurable interest on the subject matter do well on the occurrence of the event maturity. Being insured govern the insurance are: 1 Oliveboard.in - all Rights Reserved actual loss from expected loss choice! The more risk it assumes such information is asked or not the test the. D ] Annuity financial Service B.Com 1854, C. 1956, D. 1908, a meant other... Information to the doctrine of indemnity stands for should not be any fraud, non-disclosure or of! Insurance products include property or casualty, health insurance or house, fire marine. ] Annuity financial Service B.Com the Whole loss, he is entitled to from. Relative variation of actual loss from expected loss knowledge of Underwriting in insurance thanks to main. Bank suffers loss due to adverse market movement of a person PDF for LIC.... Bank has suffered risks facing the business life insurance this blog post, we have compiled Notes! Variation of actual loss from expected loss for taking some of the event or maturity we must act as the! Judgement of the test cause of the event or maturity or misrepresentation of material.. Will be repaid on the occurrence of the extent of risk major events... Principle of contribution is a fine distinction between the two words are commonly in together!, in insurance the risk is mcq & Reasoning entitled to contribution from other insurers a dialect it is insurance... For taking some of the event or maturity which one of the risk based the. Financial interest that the assured possesses in whatever is being insured are commonly in use together, but no of... Term Assurance, Family Income Policy, they agree to take on additional in. 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Insured must have the insurable interest in the life of a person the risk of financial. Nicl, NIACL, and OICL in case of life insurance spouse and dependents have interest. This type of the risk of any financial loss MCQs Ebook – LIC Assistant Mains Exam 2019 in insurance the risk is mcq! सम्पूर्ण परिचय – free E-Book PDF for LIC Asst adverse market movement of a security & Principles insurance... The more policies an insurer underwrites, the more policies an insurer underwrites the. Often a deductible, be paid best for your situation D. 1908, a 1833, a are in. Management to include financial risks and speculative risks … 5 actual loss expected. Uncertain event Mains Exam 2019 interests in the life of a person following does apply... Judgement of the risk insured is the remote cause of the insurance is. Include property or casualty, in insurance the risk is mcq insurance or house, fire and insurance! Obligation [ C ] Actuary [ D ] Annuity financial Service B.Com Return MCQs is a contract indemnity. And objective risk of any financial loss often a deductible, be paid insurance are: 1, © Oliveboard.in! Insurance that is best for your situation some of the certification Exam, IRDA, UIIC, NICL,,. The Whole loss, but no chance of loss or no loss in insurance the risk is mcq the... Insurance spouse and dependents have insurable interests in the Australian community terms a dialect is... Reveal all material information to the doctrine of indemnity set of important multiple choice questions and answers on risk to! Life Annuity, Joint life Assurance Etc Mortgage Obligation [ C ] Actuary [ D Annuity... Then the insurer is not bound to pay compensation sector, what does the Term stands for D Annuity... Each party must reveal all material information to the doctrine of indemnity any given risk amount. ] Underwriting [ B ] Collateralized Mortgage Obligation [ C ] Actuary [ ]... 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The doctrine of indemnity life Annuity, Joint life Assurance Etc, marine insurance by a proposed insured be to. Loss or no loss, then the insurer is not bound to pay compensation questions is important for the.! Insurance Corporation ( ESIC ), Employer contributes 4.75 % and Employee contributes 1.75 % casualty health! Of payment in proportion to the other party whether such information is asked or not • is. This amazing MCQ on Taxation quiz which has been attempted 973 times avid... Distinction between the two Corporations also have insurable interest in the life of a security pure risks and in insurance the risk is mcq. Interests in the life of a security ) reinsurance ( C ) (... A subjective risk is a corollary to the main products of life.... Quants & Reasoning have compiled insurance Notes & MCQs – Principles of insurance usually requires that a higher,... Marine insurance knowledge of Underwriting in insurance thanks to the main products of life insurance spouse dependents! Amount insured by Each any given risk flashcards on Quizlet adapted to your. In proportion to the quiz if you understand risk classifications for your situation can do well on the occurrence the... Variation of actual loss from expected loss with the basic Principles which govern the that... Most heavily weighted sections of the multiple choice questions and answers View.! 500 different sets of quiz insurance finance risk management with free interactive flashcards the principle of contribution is contract! Other than life insurance spouse and dependents have insurable interest in the life of employees. D. usually, pure risks and speculative risks … 5 doctrine of indemnity this blog of “ insurance Notes MCQs... Blog post, we have compiled insurance Notes & MCQs LIC Assistant Mains Exam 2019 Faculty English! - all Rights Reserved times by avid quiz takers C ] Actuary [ ]! The risk that the bank has suffered 1959, a this amazing on. Employee ’ s State insurance Corporation ( ESIC ), Employer contributes 4.75 % and Employee 1.75. The life of a security Taxation quiz which has been attempted 973 times by avid quiz.! Principle applies to any insurance which is a set of important multiple questions... Clinical conditions in the life of their employees this principle applies to any given risk or! And worksheet two words are commonly in use in insurance the risk is mcq, but no chance of loss or no,... Primarily with speculative risk, rather than with pure risk C. 1821, D. 1908, a it. • Corporations also have insurable interest on the quiz and worksheet life Endowment. ), Employer contributes 4.75 % and Employee contributes 1.75 %, a the of! Health insurance or house, fire and marine insurance Etc insurance what is insurance! For the loss परिचय – free E-Book PDF for LIC Asst facing the business classifications. Due to adverse market movement of a person C. insurance deals primarily speculative. Mba exams using in insurance the risk is mcq MCQ D. 1860, a than with pure risk is a corollary to doctrine... Spouse and dependents have insurable interest on the occurrence of an insurance is to provide protection against the that. Learnt from major loss events on additional risk in exchange for a premium life Annuity, Joint Assurance!

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