1.
The Insurance is a ______________
A. Contract
B. Uncertainty
C. Peril
D. Hazard
2. Losses arising due to a risk exposure retained or assured is known as ______________
A. Risk Reduction
B. Risk Financing
C. Risk Retention
D. Risk Sharing
3. An alternative approach to the check list is ______________
A. Threat Analysis
B. Event Analysis
C. Operability Study
D. Minimum Level Analysis
4. The measures aimed at avoiding,eliminating or reducing the chances of loss production is
covered by ______________
A. Risk Control
B. Risk Retention
C. Risk Avoidance
D. Risk Financing
5. Insurance is best suited to risk with ______________.
A. high frequency and low loss severity.
B. low frequency and high loss severity.
C. minimum frequency and no loss severity.
D. high frequency and high loss severity.
The risk manager maybe able to identify the new ventures involved in ______________.
A. Pure risk.
B. Group Risk.
C. Speculative risk.
D. Particular risk.
7. An instrument by which a pure risk is transferred by a party other than insurer is
A. Insurance
B. Retention.
C. Non Insurance Transfer.
D. Reinsurance
8. The Person whose risk is insured is called ______________.
A. Insured
B. merchandiser
C. marketer
D. Agents
9. That which is designed to improve the information on which decisions are take to reduce
risk is ______________.
A. Transfer
B. Research.
C. Costs.
D. Deflation.
10. Uncertain events are broadly classified as ______________.
A. Predictable and Unpredictable.
B. Possible and Impossible
C. Natural and Artificial.
D. Rare and Continuous
11. The possibility that actual results may differ from predicted results is known as
______________.
A. Risk.
B. Uncertainty.
C. Peril.
D. Hazards.
12. The success of whole process of risk management depends on its ______________.
A. Identification
B. Risk analysis
C. Assessment of risk
D. Evaluation of risk
13. That which covers the cost of self insurance, loading in insurance premiums and enforcing
hedging arrangements is ______________.
A. Cost of Loss Financing
B. Cost of Control of loss
C. Cost of Residual Uncertainty
D. Cost of Internal Risk Reduction
14. If RMIS has poor system documentation then the remedy is to provide ______________.
A. solid vendor account team
B. internal access to system expert
C. assessment in proper manner
D. clear and comprehensive specifications
15. The risk management can be done by ______________.
A. Insurance
B. Hedging
C. Derivatives
D. All of the above
16. The installation of heat or smoke activated sprinkler systems that are designed to minimize
fire damage in the outbreak of a fire is an example of ______________.
A. Loss prevention
B. Loss reduction
C. Hedging
D. Insurance
17. ______________ is the extra payment done for administrative and capital cost.
A. Premium
B. Premium loading
C. Interest
D. Contingency
18. Transfer of rights and remedies of the insured to the insurer after indemnity has been
effected is called ______________.
A. Insurable interest
B. Subrogation
C. Proximate clause
D. Money back policy
19. The principle of indemnity is applicable to ______________ only.
A. Life Insurance
B. Personal accident insurance
C. Proximate Cause
D. Property insurance
20. ______________ is those terms, which are implied in every contract of marine insurance
unless they are expressly excluded.
A. Guarantee
B. Express Warranties
C. Implied Warranties
D. Waiver Clause
