IC 38 Question Bank PDF

IC 38 Question Bank Q1:Which among the following is the regulator for the insurance industry in India? I. Insurance Authority of India II. Insurance Regulatory and Development Authority of India III. Life Insurance Corporation of India IV. General Insurance Corporation of India Q2: Which among the...

IC 38 Question Bank Q1:Which among the following is the regulator for the insurance industry in India? I. Insurance Authority of India II. Insurance Regulatory and Development Authority of India III. Life Insurance Corporation of India IV. General Insurance Corporation of India Q2: Which among the following is a secondary burden of risk? I. Business interruption cost II. Goods damaged cost III. Setting aside reserves as a provision for meeting potential losses in the future IV. Hospitalisation costs as a result of heart attack Q3:Which among the following is a method of risk transfer? I. Bank FD II. Insurance III. Equity shares IV. Real estate Q4:Which among the following scenarios warrants insurance? I. The sole bread winner of a family might die untimely II. A person may lose his wallet III. Stock prices may fall drastically IV. A house may lose value due to natural wear and tear Q5:Which of the below insurance scheme is run by an insurer and not sponsored by the Government? I. Employees State Insurance Corporation II. Crop Insurance Scheme III. Jan Arogya IV. All of the above Q6:Risk transfer through risk pooling is called I. Savings II. Investments III. Insurance IV. Risk mitigation Q7: The measures to reduce chances of occurrence of risk are known as I. Risk retention II. Loss prevention III. Risk transfer IV. Risk avoidance Q8: By transferring risk to insurer, it becomes possible ___________. I. To become careless about our assets II. To make money from insurance in the event of a loss III. To ignore the potential risks facing our assets IV. To enjoy peace of mind and plan one‟s business more effectively Q9: Origins of modern insurance business can be traced to I. Bottomry II. Lloyds III. Rhodes IV. Malhotra Committee Q10: In insurance context „risk retention‟ indicates a situation where I. Possibility of loss or damage is not there II. Loss producing event has no value III. Property is covered by insurance IV. One decides to bear the risk and its effects Q11: Which of the following statement is true? I. Insurance protects the asset II. Insurance prevents its loss III. Insurance reduces possibilities of loss IV. Insurance pays when there is loss of asset Q 12:Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt every year resulting in a combined loss of Rs. 80,000. What should be the annual contribution of each house owner to make good this loss? I. Rs.100/- II. Rs.200/- III. Rs.80/- IV. Rs.400/- Q13: Which of the following statements is true? I. Insurance is a method of sharing the losses of a „few‟ by „many‟ II. Insurance is a method of transferring the risk of an individual to another individual III. Insurance is a method of sharing the losses of a „many‟ by a few IV. Insurance is a method of transferring the gains of a few to the many Q14:Why do insurers arrange for survey and inspection of the property before acceptance of a risk? I. To assess the risk for rating purposes II. To find out how the insured purchased the property III. To find out whether other insurers have also inspected the property IV. To find out whether neighbouring property also can be insured Q15: Which of the below option best describes the process of insurance? I. Sharing the losses of many by a few II. Sharing the losses of few by many III. One sharing the losses of few IV. Sharing of losses through subsidy Q16: What is meant by customer lifetime value? I. Sum of costs incurred while servicing the customer over his lifetime II. Rank given to customer based on business generated