141 + Mcqs in Principles of Insurance in Bachelor of Commerce (B Com) Page 3 McqOptions

101.	Crop insurance scheme is also known as __________
A.	Multi purpose policy
B.	Wagering policy
C.	Rashtriya Krishi Bima Yougan
D.	Jan Arogya Bima policy
Answer» D. Jan Arogya Bima policy

Discussion

102.	_________ is a theft committed by breaking or out of the premises.
A.	Burglary
B.	Blanket
C.	Fire
D.	None
Answer» B. Blanket

Discussion

103.	The term ________ is referred only Life Insurance business
A.	Warranties
B.	Utmost good faith
C.	Assurance
D.	None
Answer» D. None

Discussion

104.	Motor vehicle insurance begin in ___________
A.	U.K. 9
B.	USA
C.	India
D.	Japan
Answer» B. USA

Discussion

105.	Risks are not suited to treatment by insurance are ________
A.	Static risk
B.	Particular risk
C.	Dynamic risk
D.	Property risk
Answer» D. Property risk

Discussion

106.	________ plan also refers to an exclusive policy for exclusive people.
A.	Jeevan Aadhar
B.	Jeevan Shree
C.	Money Back Policy
D.	Jeevan Vishwas
Answer» C. Money Back Policy

Discussion

107.	__________ provides evidence of insurance to the police and Registration Authorities under Motor Vehicle Act.
A.	Endorsement
B.	Policy Form
C.	Certificate of insurance
D.	Cover note
Answer» D. Cover note

Discussion

108.	The normal period of a ________ insurance contract is one year
A.	Life
B.	Marine
C.	Fire
D.	Property
Answer» D. Property

Discussion

109.	Life insurance policies are issued for ________ years duration.
A.	15-20
B.	5-10
C.	10-15
D.	10-20
Answer» C. 10-15

Discussion

110.	________ means a premium which remains unchanged through out the life of a policy.
A.	Avg. premium
B.	Gross premium
C.	Total premium
D.	Level premium
Answer» E.

Discussion

111.	The percentage of losses incurred to premiums earned ________ ratio
A.	Incurred Loss
B.	Expense
C.	Loss event
D.	None
Answer» B. Expense

Discussion

112.	The scope of protection provided under the contract of insurance is ________
A.	Condition
B.	Coverage
C.	Contribution
D.	None
Answer» C. Contribution

Discussion

113.	The amount given by way of insurance and therefore the amount accepted by the reinsurance is known as __________
A.	Cession
B.	Retrocession
C.	Retention
D.	Ceding
Answer» B. Retrocession

Discussion

114.	___________ is a contract against injury or death resulting from accident.
A.	Property insurance
B.	Liability Insurance
C.	Personal accident insurance
D.	None of these
Answer» D. None of these

Discussion

115.	________ enables to recoup the losses suffered by people consequent on burglary or hour breaking
A.	Burglary insurance
B.	Fire insurance
C.	both (a) and (b)
D.	None
Answer» B. Fire insurance

Discussion

116.	The time frame for which an insurance policy provides coverage is known as ________
A.	Policy term
B.	Policy loan
C.	Policy mode
D.	None
Answer» B. Policy loan

Discussion

117.	________ is sort of contract which is approved by Indian Contracts Act
A.	Insurance contract
B.	Indian Companies Act
C.	Reinsurance
D.	None
Answer» B. Indian Companies Act

Discussion

118.	Motor Vehicle Act was established in ________
A.	1888
B.	1988
C.	1998
D.	1978
Answer» C. 1998

Discussion

119.	________ means the transfer of all the rights and remedies available to the insured in respect of the subject matter to the insurer after indemnity has been effected.
A.	Subrogation
B.	Indemnity
C.	Contribution
D.	None
Answer» B. Indemnity

Discussion

120.	________ is a document issued in advance of the policy
A.	Endorsements
B.	Cover note
C.	Certificate of deposit
D.	None
Answer» C. Certificate of deposit

Discussion

121.	Health insurance can be availed by people aged between ________ and ________
A.	10 and 100
B.	7 and 75
C.	5 and 75
D.	10 and 70
Answer» D. 10 and 70

Discussion

122.	A schedule of prices, fees and fares is known as _________
A.	Mortgage
B.	Underwriting
C.	Tariff
D.	None
Answer» D. None

Discussion

123.	________ is a package policy which provides protection against a number of separate points.
A.	Single peril policy
B.	Group peril policy
C.	Multiperil policy
D.	None
Answer» D. None

Discussion

124.	Marine insurance protects against
A.	Fire perils
B.	Marine perils
C.	both (a) & (b)
D.	None
Answer» C. both (a) & (b)

Discussion

125.	________ is a form of health insurance against loss by accidental bodily injury
A.	Property insurance
B.	Marine insurance
C.	Personal insurance
D.	Accident insurance
Answer» E.

Discussion

126.	________ is a document in which contains the terms and conditions of the insurance contract is known as ________
A.	Insurance premium
B.	Insurance policy
C.	Contribution
D.	None
Answer» C. Contribution

Discussion

127.	____________ is a policy in which the limits of the risks are determined by place of particular voyage.
A.	Time policy
B.	Valued policy
C.	Voyage Policy
D.	Floating policy
Answer» D. Floating policy

Discussion

128.	The danger of loss from the unforeseen circumstances in future refers to _________
A.	Perils
B.	Hazards
C.	Damage
D.	Risk
Answer» E.

Discussion

129.	In Marine Insurance, insurable interest is enough at the time of _______
A.	Maturity
B.	Insurance
C.	Loss
D.	Claim
Answer» D. Claim

Discussion

130.	The ________ is the party who agrees to compensate the other person against possible losses.
A.	Insured
B.	Insurer
C.	Assured
D.	None
Answer» C. Assured

Discussion

131.	________ means a willful and intentional act on part of the self destroyer
A.	Murder
B.	Death
C.	Accident
D.	Suicide
Answer» C. Accident

Discussion

132.	The insurer who obtains a guarantee is _________
A.	Ceding insurer
B.	Re-insurer
C.	Direct insurer
D.	Under write
Answer» B. Re-insurer

Discussion

133.	A fire policy containing an average clause is _________
A.	Valued policy
B.	Average policy
C.	Specific policy
D.	Floating policy
Answer» C. Specific policy

Discussion

134.	_____________ Policy is granted only in respect of stocks of inventories of the insured under fire insurance business.
A.	Declaration
B.	Floating
C.	Replacement
D.	Valued
Answer» B. Floating

Discussion

135.	Fire insurance contract is a contract of
A.	Guarantee
B.	Validity
C.	Contribution
D.	Indemnity
Answer» E.

Discussion

136.	________ is a social device for eliminating or reducing the loss of society from certain risk.
A.	Premium
B.	Policy
C.	Insurance
D.	Contract
Answer» D. Contract

Discussion

137.	A Re-insurance of Re-insurance refers to
A.	Retention
B.	Retrocession
C.	Ceding insurer
D.	Line
Answer» C. Ceding insurer

Discussion

138.	Under ________ insurance, loss of profit policy is called as consequential loss policy
A.	Marine
B.	Property
C.	Fire
D.	Life
Answer» D. Life

Discussion

139.	Re-insurance Treaties can be used for ________ re-insurance
A.	Hull
B.	Cargo
C.	Both (a) and (b)
D.	None
Answer» D. None

Discussion

140.	Uberrimae Fidei means _________
A.	Absolute good faith
B.	Absolute faith
C.	Relative faith
D.	these
Answer» B. Absolute faith

Discussion

141.	Which of the statements is correct?A. One of the methods of risk retention is by way of voluntary excess or deductible available under the policy.B. Another method of retention of risk is to absorb small losses as normal operating expenses of business.
A.	Statement A.
B.	Statement B.
C.	Both the statements
D.	Neither of the statements
Answer» D. Neither of the statements

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Crop insurance scheme is also known as __________

_________ is a theft committed by breaking or out of the premises.

The term ________ is referred only Life Insurance business

Motor vehicle insurance begin in ___________

Risks are not suited to treatment by insurance are ________

________ plan also refers to an exclusive policy for exclusive people.

__________ provides evidence of insurance to the police and Registration Authorities under Motor Vehicle Act.

The normal period of a ________ insurance contract is one year

Life insurance policies are issued for ________ years duration.

________ means a premium which remains unchanged through out the life of a policy.

The percentage of losses incurred to premiums earned ________ ratio

The scope of protection provided under the contract of insurance is ________

The amount given by way of insurance and therefore the amount accepted by the reinsurance is known as __________

___________ is a contract against injury or death resulting from accident.

________ enables to recoup the losses suffered by people consequent on burglary or hour breaking

The time frame for which an insurance policy provides coverage is known as ________

________ is sort of contract which is approved by Indian Contracts Act

Motor Vehicle Act was established in ________

________ means the transfer of all the rights and remedies available to the insured in respect of the subject matter to the insurer after indemnity has been effected.

________ is a document issued in advance of the policy

Health insurance can be availed by people aged between ________ and ________

A schedule of prices, fees and fares is known as _________

________ is a package policy which provides protection against a number of separate points.

Marine insurance protects against

________ is a form of health insurance against loss by accidental bodily injury

________ is a document in which contains the terms and conditions of the insurance contract is known as ________

____________ is a policy in which the limits of the risks are determined by place of particular voyage.

The danger of loss from the unforeseen circumstances in future refers to _________

In Marine Insurance, insurable interest is enough at the time of _______

The ________ is the party who agrees to compensate the other person against possible losses.

________ means a willful and intentional act on part of the self destroyer

The insurer who obtains a guarantee is _________

A fire policy containing an average clause is _________

_____________ Policy is granted only in respect of stocks of inventories of the insured under fire insurance business.

Fire insurance contract is a contract of

________ is a social device for eliminating or reducing the loss of society from certain risk.

A Re-insurance of Re-insurance refers to

Under ________ insurance, loss of profit policy is called as consequential loss policy

Re-insurance Treaties can be used for ________ re-insurance

Uberrimae Fidei means _________

Which of the statements is correct?A. One of the methods of risk retention is by way of voluntary excess or deductible available under the policy.B. Another method of retention of risk is to absorb small losses as normal operating expenses of business.

Health insurance can be availed by people aged between and

is a document in which contains the terms and conditions of the insurance contract is known as