1.
A lien can be placed on ones income and financial assets to satisfy a legal judgment. This results in ...............
A
pure risk
B
liability risk
C
dynamic risk
D
acceptable risk
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A lien can be placed on ones income and financial assets to satisfy a legal judgment. This results in ...............
pure risk
liability risk
dynamic risk
acceptable risk
The law of large numbers can be applied more easily to ...............than speculative risk
Pure Risk
Objective Risk
Acceptable Risk
Subjective Risk
defective products is an example of which loss exposure
property loss exposure
human resource loss exposure
crime loss exposure
liability loss exposure
Which type of coverage pays for damages intentionally caused by another person, such as breaking a windshield in a parking lot?
Property damage liability coverage
Comprehensive coverage
Collision insurance
Product liability coverage
The ratemaking function in a life insurance company is performed by ...............
production sales management
insurance department
actuarial department
underwriter
Costs for injury or death due to hazards at the work place are covered under ..................insurance
product liability
life
malpractice
public liability
Risk can be eliminated without an adverse effects on the goals of an individual or business probably should not be avoided. 2. self insurance is another way of mixing risk retention & risk transfer. Which of the above statement is false.
only 1
only 2
both 1 & 2
none
Which of the following is the advantage of reinsurance for insurer? 1. Insurer can share his risk with other insurance. 2. It reduces the situation of certainty by distribution of risks among other insurers
only 1
only 2
none
both 1 & 2
Which of following statement is correct 1) According to captive model an insurance company market its products almost exclusively through the distribution channels of its banking parent. 2) According to partnership model, the insurance company distributes its products partly, though not exclusively through a banking channel.
only 1
only 2
both 1 & 2
none of above
A state law requires individuals suffering injury or loss from an automobile accident to be reimbursed by their own insurance companies. What type of insurance is this?
No-fault auto insurance
Public liability insurance
Automobile physical damage insurance
Automobile liability insurance
Life insurance and general insurance are divided on the basis of
nature of insurance
risk point of view
business point of view
none of above
The ...............principle states that the business and individual should insure potentially serious losses before relatively minor losses
measurable loss
determinable loss
catatrophic hazards
large loss
Which one of the following is not a condition for an insurable loss?
Losses must be under the control of the insured
The insured hazard must be geographically widespread
The probability of a loss should be predictable
Losses must result from an intentional action by the insured person
...............insurance is the one where the loss is not due to physical damage but the result of dishonesty of employees as a result of physical damage
Liability
Pecuniary
Motor
Personal
Which statement is not true about a mutual insurance company?
It is a cooperative
It has stockholders and operates to earn a profit
It is owned by its policyholders
Surplus of income is distributed to policyholders as a reduction in premium
The doctrine of subrogation is the supplementary principle of ...............
insurance
surety
Bailment
Indemnity
according to ...............principle , life insurance can be affected on the lives of third parties provided the proposer has insurable interest in the third party
insurable interest in own life
insurable interest in property insurance
insurable interest in others life
none of above
...............is a corollary of the indemnity principle. It is ...............concept that legally differentiates insurance from gambling
indemnity, subrogartion
endorsement, binders
subrogation, indemnity
binders, endorsement
Which type of insurance protects the policyholder against loss or damage to a ship or its cargo on the high seas?
hazards
inland
transportation
marine
Indemnity also means ...............according to the Collins Thesaurus
Guarantee, security, compensation, protection
Reimbursement, payment, repayment, safety
Safety, payment, guarantee, security
None of above