• 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. What is the Principle of Insurance called under which insured must always try his level best to minimize the loss of his insured property, in case of uncertain events? -----Question 2. • It is meant insurance other than life insurance. e) Causa Proxima, a) Mitigation of loss A pure risk is a chance of loss or no loss, but no chance of gain. To get more questions visit other sections. Underwriting denotes acceptance of risk on a Proposal. In this blog post, we have compiled Insurance Notes & MCQs on classification & Principles of Insurance. • If the risk insured is the remote cause of the loss, then the insurer is not bound to pay compensation. Oliveboard Live Courses & Mock Test Series, © 2020 Oliveboard.in - All Rights Reserved. Financial & Insurance Awareness MCQs Ebook – LIC Assistant Mains Exam 2019. The purpose of an Insurance is to provide protection against the risk of any financial loss. 1955, B. 5 *The test specification (relevant to the M67 multiple choice question exam only) has an in … Insurance is transfer of risk and Insurance companies are in the business of accepting the risks. • The principle of contribution is a corollary to the doctrine of indemnity. Page 2 Question 4. c) Principle of Contribution B. • 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. d) Principle of Indemnity 1854, C. 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 . Examples: Term Assurance, Whole Life, Endowment Assurance, Family Income Policy, Life Annuity, Joint Life Assurance Etc. Multiple choice Questions on Insurance and Risk Management. Practice for BBA or MBA exams using these MCQ. So, it does not apply to life insurance. 3. A subjective risk is uncertainty-based on an individual's condition. In popular terms a dialect it is famous as non-life insurance. • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. • There should not be any fraud, non-disclosure or misrepresentation of material facts. 9. • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. • Corporations also have insurable interests in the life of their employees, a) Insurable Interest 1815, B. Question 6. Insurance MCQ Questions and answers with explanations. b) Principle of Subrogation The basic principles which govern the insurance are: • Each party must reveal all material information to the other party whether such information is asked or not. 1906, C. You can do well on the quiz if you understand risk classifications. a) Insurable Interest Understand the key risk management lessons learnt from major loss events. What is the type of the risk that the bank has suffered ? Go through these and acquaint yourself with the basic insurance terminologies. When was the Indian Mercantile Insurance established? Our online risk management trivia quizzes can be adapted to suit your requirements for taking some of the top risk management quizzes. 6 6. The more policies an insurer underwrites, the more risk it assumes. It is the judgement of the insurance company to take the risk based on the assessment of the extent of risk. Insurance MCQ AINS Chapter 10 The risk associated with the nature of the industry in which the issuer of an investment operates and the management of the issuer itself is known as The risk associated with the nature of the industry in which the issuer of an investment operates and the management of the issuer itself is known as 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? Reinsurance can be called as _ _____ ( a) Insurance of Insurance (b) Insurance of insures (c) Insurance of insurance policy (d) None UNIT IV 61. 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 • If the risk insured is the remote cause of the loss, then the insurer is not bound to pay compensation. 1 Principles of Risk Management and Insurance, 11e (Rejda) Global Edition Chapter 2 The Insurance d) Double insurance Revise your Insurance notes multiple times so that you don’t miss out on any of the marks in the LIC Assistant Mains 2019 exam. 7. In popular terms a dialect it is famous as non-life insurance. C. Insurance deals primarily with speculative risk, rather than with pure risk. Insurance Notes & MCQs – Principles of Insurance What is Life Insurance? So, it does not apply to life insurance. When was the Oriental Life Insurance Company established? 1947, B. Risk means the probable disadvantageous, undesirable or unprofitable outcome of a fortuitous event. • 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. 10 Most Common Insurance Questions Looking into insurance could be confusing as you need them for so many areas of your life, such as for your automobile, business, and home to start. The majority of the multiple choice questions reflect common clinical conditions in the Australian community. It applies to any insurance which is a contract of indemnity. 1818. Each Section contains maximum 70 questions. Types of risk are; subjective risk and objective risk. b) Utmost Good Faith 1907, D. c) Principle of Proximate Cause 5. D. Usually, pure risks and speculative risks … Every risk has 100% likelihood. Page-10 section-4 1905, B. Conversely, in ERM, risk When was Life Insurance sector nationalised? When insurance companies underwrite a new policy, they agree to take on additional risk in exchange for a premium. A comprehensive database of more than 35 risk management quizzes online, test your knowledge with risk management quiz questions. a) Endowment. Mitigation of loss, a) Insurable Interest Answers. Mary is in a car accident, and her car is completely destroyed. • 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. Understand current trends in risk management. • It applies to fire and marine insurance. • The principle of contribution is a corollary to the doctrine of indemnity. [A]Underwriting [B]Collateralized Mortgage Obligation [C]Actuary [D]Annuity c) Principle of Contribution Which of the following principles of Insurance assures about the financial interest that the assured possesses in whatever is being insured? The traditional risk manager generally reports to an organizational department such as finance, operations, or legal. A. A. e) Causa Proxima, a) Insurable Interest 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 … • Insured must have the insurable interest on the subject matter … 2. (a) Insurance (b) Reinsurance (c) Policy (d) Premium 60. • The insurer is liable for loss only when such a loss is proximately caused by the peril insured against Also explore over 7 similar quizzes in this category. Insurable amount is paid either on the occurrence of the event or maturity. Understand the position of insurance within risk management. 1833, A. Question 2. It’s a long term contract. • The cause should be the proximate cause and cannot the remote cause Under Employee’s State Insurance Corporation (ESIC) , Employer contributes 4.75% and employee contributes 1.75% . Insurance Domain Knowledge and Basics. 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. • It applies to fire and marine insurance. c) Principle of Contribution Insurance Awareness Multiple Choice Questions for LIC, NIACL and other competitive exams. • 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. Reinsurance ( C ) Policy ( D ) premium 60 the main products of life insurance and. 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