MCQOPTIONS
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MCQOPTIONS
This section includes 248 Mcqs, each offering curated multiple-choice questions to sharpen your Software Engg knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Risk insured against death is a contract of ________ |
| A. | assurance. |
| B. | agreement. |
| C. | indemnity. |
| D. | caveat emptor. |
| Answer» B. agreement. | |
| 2. |
Annual maintenance contract for computers is ………… |
| A. | Risk avoidance |
| B. | Loss reduction |
| C. | Insurance |
| D. | Transfer of risk by contract |
| Answer» E. | |
| 3. |
Foreign equity participation is allowed in insurance sector up to a limit of ____ percent. |
| A. | 80. |
| B. | 73. |
| C. | 49. |
| D. | 26 . |
| Answer» E. | |
| 4. |
On the death of the bread-earner, two losses occur in the family-one is loss of human lifeand the other _____ |
| A. | Loss of insurance |
| B. | Loss of investment |
| C. | Loss of bank deposits |
| D. | Earning power of family |
| Answer» E. | |
| 5. |
Moral hazard may be suspected in cases where _____ |
| A. | the life to be insured is old. |
| B. | the insurance is for a very large sum insured |
| C. | in the both the cases |
| D. | none of the above cases |
| Answer» D. none of the above cases | |
| 6. |
“Human life is an income generating asset”. The statement is…… |
| A. | True |
| B. | Partly true |
| C. | False |
| D. | Partly false |
| Answer» B. Partly true | |
| 7. |
Spreading of risk otherwise termed as………. |
| A. | Shifting of risk |
| B. | Acceptance of risk |
| C. | Reduction of risk |
| D. | Spreading of risk |
| Answer» B. Acceptance of risk | |
| 8. |
Relative variation of actual loss from expected loss is called……… |
| A. | Subjective risk |
| B. | Objective risk |
| C. | Actual loss |
| D. | Expected loss |
| Answer» C. Actual loss | |
| 9. |
When was IRD Act passed? |
| A. | 1972. |
| B. | 1999. |
| C. | 1989. |
| D. | 2000. |
| Answer» C. 1989. | |
| 10. |
….. is a condition in which there is a possibility of an adverse deviation from a desiredoutcome that is expected or hope for. |
| A. | Loss |
| B. | Profit |
| C. | Risk |
| D. | Uncertainty |
| Answer» D. Uncertainty | |
| 11. |
The premium actually paid by the policy holder depends upon___________ |
| A. | the wealth of the person to be insured. |
| B. | the level of risk assessed by the insurer. |
| C. | the tables of rates printed by the insurer. |
| D. | agents report. |
| Answer» C. the tables of rates printed by the insurer. | |
| 12. |
Premium of a policy is calculated on the basis of…… |
| A. | Income of the insured |
| B. | Agent’s report |
| C. | Risk associated with the policy |
| D. | None of the above |
| Answer» D. None of the above | |
| 13. |
The business of insurance is related to protection of ________ |
| A. | status |
| B. | savings |
| C. | economic value of assets |
| D. | profits |
| Answer» D. profits | |
| 14. |
Committee constituted to reform insurance sector constituted in the 1993 was headed by |
| A. | R.N. Malhothra |
| B. | S. Narasimham |
| C. | Manmohan Singh |
| D. | Rangarajan |
| Answer» B. S. Narasimham | |
| 15. |
………… Clause generally inserted in all general insurance contract to discourage underinsurance |
| A. | Specific clause |
| B. | General clause |
| C. | Valuation clause |
| D. | Average clause |
| Answer» E. | |
| 16. |
The term ‘Assurance’ refers to ________ |
| A. | Life Insurance Business. |
| B. | Marine Insurance Business. |
| C. | Fire Insurance Business. |
| D. | Motor Vehicle Business. |
| Answer» B. Marine Insurance Business. | |
| 17. |
If the market interest rate is higher, the cost of insurance… |
| A. | Increases |
| B. | Moderate |
| C. | Decreases |
| D. | No change |
| Answer» D. No change | |
| 18. |
Which one of the following is true for a group policy? |
| A. | Copies of the master policy are given to all members by the insurer. |
| B. | The group has to be formed exclusively for the purpose of insurance |
| C. | Entry into the scheme and exit out of it, is at the option of the members. |
| D. | The amount of the cover is determined by the scheme |
| Answer» E. | |
| 19. |
Organizations are mainly concerned with managing |
| A. | pure risks. |
| B. | speculative risks. |
| C. | personal risks. |
| D. | other risks |
| Answer» B. speculative risks. | |
| 20. |
One of the fundamental principles of life insurance is ______ |
| A. | there is an insurer and policy holder |
| B. | utmost good faith |
| C. | insurable interest |
| D. | Both (b) and (c |
| Answer» E. | |
| 21. |
…………….. is planned retention by which the part or full of the exposure arising a riskfactor is retained by the firm |
| A. | Reinsurance |
| B. | Self insurance |
| C. | Risk financing |
| D. | None of the above |
| Answer» C. Risk financing | |
| 22. |
When the amount for which a subject matter is insured is more that its actual value. It iscalled….. |
| A. | Double insurance |
| B. | Over insurance |
| C. | Over premium |
| D. | None of these |
| Answer» C. Over premium | |
| 23. |
When the amount for which a subject matter is insured is more than its actual value it iscalled _____ |
| A. | Double Insurance |
| B. | Over Insurance |
| C. | Reinsurance |
| D. | Non-Proportional Reinsurance |
| Answer» C. Reinsurance | |
| 24. |
Broker’s Association of India was granted recognition by IRDA on _________. |
| A. | Dec 11, 2001. |
| B. | Dec 11, 2002. |
| C. | Dec 11, 1999. |
| D. | Dec 11, 2003. |
| Answer» B. Dec 11, 2002. | |
| 25. |
Subrogation means ______ |
| A. | something of monetary value |
| B. | to make good loss |
| C. | payment of premium |
| D. | transfer of rights of an insured to another person |
| Answer» E. | |
| 26. |
A human life is an income-generating asset______________ |
| A. | true. |
| B. | false. |
| C. | partially true. |
| D. | partially false. |
| Answer» B. false. | |
| 27. |
________ is a document which provides evidence of the contract of insurance. |
| A. | Proposal form |
| B. | Policy form |
| C. | Cover note |
| D. | Certificate of Insurance |
| Answer» C. Cover note | |
| 28. |
Who are the beneficiaries of Insurance? |
| A. | Society |
| B. | Individual |
| C. | Business |
| D. | All of these |
| Answer» E. | |
| 29. |
Fundamental risk is also termed as _________ |
| A. | Particular risk. |
| B. | Speculative risk. |
| C. | Group risk. |
| D. | Pure risk. |
| Answer» D. Pure risk. | |
| 30. |
The person whose risk is insured a is called ____________ |
| A. | Insured |
| B. | Assured |
| C. | Indemnity |
| D. | Both a and b |
| Answer» E. | |
| 31. |
What is full form of FPA in the context of marine underwriting? |
| A. | Foreign Policy Association |
| B. | Free of Particular Average |
| C. | Free Port Association |
| D. | Food and Perishable Accounting |
| Answer» D. Food and Perishable Accounting | |
| 32. |
When the same risk and subject matter is insured with more than one insurer is called as _______ |
| A. | Double Insurance |
| B. | Over Insurance |
| C. | Reinsurance |
| D. | Non-Proportional Reinsurance |
| Answer» B. Over Insurance | |
| 33. |
Financial underwriting is done to evaluate ____ |
| A. | the probability of the policy lapsing in future |
| B. | the possibility of moral hazard |
| C. | Both (a) an (b) statements are correct |
| D. | Both (a) and (b) statements are wrong |
| Answer» C. Both (a) an (b) statements are correct | |
| 34. |
Facts which need to be disclosed is ____ |
| A. | facts of common knowledge |
| B. | facts which lessen the risks |
| C. | facts which every one is supposed to know in general |
| D. | family history |
| Answer» E. | |
| 35. |
Unemployment, war, inflation, earthquakes etc., are the examples of ________ |
| A. | Pure risk. |
| B. | Particular risk. |
| C. | Personal risk. |
| D. | Fundamental risk. |
| Answer» E. | |
| 36. |
The business of insurance is related to protection of………… |
| A. | Status |
| B. | Economic value of asset |
| C. | Savings |
| D. | Profit |
| Answer» C. Savings | |
| 37. |
Main emphasis of risk management is on |
| A. | risk retention. |
| B. | reduction of cost of handling risk. |
| C. | risk transfer. |
| D. | insurance. |
| Answer» C. risk transfer. | |
| 38. |
Fire insurance can be taken in respect of_____. |
| A. | movable property only. |
| B. | immovable property only. |
| C. | both movable and immovable properties. |
| D. | persons only. |
| Answer» D. persons only. | |
| 39. |
Which of the following risks are insurable? |
| A. | Speculative. |
| B. | Economic. |
| C. | Sure to happen. |
| D. | Other risks. |
| Answer» C. Sure to happen. | |
| 40. |
The policy holder’s duty to disclose material facts lies at the time of ______ |
| A. | taking a policy |
| B. | revival of policy |
| C. | reinstatement of surrendered policy |
| D. | all of the above |
| Answer» E. | |
| 41. |
………………is an example for personal risk |
| A. | Business loss |
| B. | Fire occurred in business premises |
| C. | Risk of premature death |
| D. | None of the above |
| Answer» D. None of the above | |
| 42. |
Which of the following steps in the risk management process helps in determining suminsured under policies? |
| A. | risk identification. |
| B. | risk retention. |
| C. | risk transfer. |
| D. | risk evaluation. |
| Answer» E. | |
| 43. |
When the subject is partially lost by a peril insured against, it is called ___________ |
| A. | General average loss. |
| B. | Constructive total loss. |
| C. | Actual total loss. |
| D. | Particular average loss. |
| Answer» E. | |
| 44. |
Guarantees for employer for the loss out of employee's dishonest is_____________. |
| A. | burglary insurance. |
| B. | fidelity insurance. |
| C. | third party insurance. |
| D. | medical insurance. |
| Answer» C. third party insurance. | |
| 45. |
Insurance covers the risk of most certain event _____ |
| A. | birth of a person |
| B. | protection of the childhood |
| C. | Protection in old age |
| D. | death of a person |
| Answer» E. | |
| 46. |
When did Government of India nationalized life insurance business. |
| A. | 1956 |
| B. | 1978 |
| C. | 1991 |
| D. | 2002 |
| Answer» B. 1978 | |
| 47. |
Individuals define risk as____________. |
| A. | deviation from some expected return. |
| B. | a cost of investing. |
| C. | a quantitative measure. |
| D. | “losing money.” |
| Answer» C. a quantitative measure. | |
| 48. |
Changes is technology is a example for ………… |
| A. | Pure risk |
| B. | Speculative risk |
| C. | Static risk |
| D. | Dynamic risk |
| Answer» E. | |
| 49. |
Risk evaluation breaks down into two parts. They are: |
| A. | Probability of loss occurring and its severity |
| B. | Risk calculation and risk analysis |
| C. | Loss calculation and avoidance |
| D. | None of the above |
| Answer» B. Risk calculation and risk analysis | |
| 50. |
Cargo ship caught by fire is an example of __________ |
| A. | particular average loss. |
| B. | general average loss. |
| C. | constructive total loss. |
| D. | actual total loss. |
| Answer» C. constructive total loss. | |