80 practice sets · Page 3 of 4
Bailment is an agreement between a person ...............who owns or lawfully possesses goods and another person ,............... who is given possession of the goods for a specific purpose
baliee, bailor
endorser, endorsee
bailor, bailee
none of above
Collision insurance is a type of
automobile physical damage insurance
bodily injury liability coverage
property damage liability coverage
comprehensive insurance
Dr. Robins chose to stop practicing when malpractice insurance premiums became too high for him to afford. He is managing risk by .................. risk
assuming
reducing
avoiding
transferring
Purchasing insurance is a technique used to
assume risk
shift risk
reduce risk
avoid risk
...............contract means that only one party makes a legally enforceable promise
aleatory contract
unilateral
conditional
personal
Higher the percentage of ...............in GDP , lower the insurance penetration
agriculture
insurance
banking
all of above
A method for reducing the cost of health care by offering the services of doctors and hospitals at discount rates or giving breaks in co-payments and deductibles is offered by
a health maintenance organization
a major medical plan
Medicare
a preferred provider organization
Which type of insurance policy will protect a business from theft and forgery by its employees?
a fidelity bond
burglary insurance
robbery insurance
indemnity insurance
Which of the following are the principles of Risk Manangement. 1. Principle of risk identification 2. Principle of risk ananlysis 3. Principle of Risk assessment 4. Principle of Risk Control.
1,2,3
1,4
1,3,4
1,2,3,4
Active risk retention means that the firm is aware of the loss exposure and plans to retain a part or all of it. 2) Passive retention however is the failure to identify a loss exposure, failure to act. Which of the above statement is not correct.
1,2
only 2
only 1
none of the above
Insurance Ombudsman is open to all individuals whose claim amount is less than
1 Crore
20 crores
20 lakhs
10 lakhs
The idea of insurance ombudsman was mooted in the year
1998
1938
1986
1990
LIC (Mauritius) ltd. Was set in ...............
1990
2001
2009
1998
The general insurance corporation is holding company, which has ...............subsidiary companies
10
12
4
6
A type of insurance that combines protection with an investment plan is called
whole life
endowment
limited-pay
universal
Which of the following is not a condition for an insurable loss?
Using accurate and effective accounting and financial controls to protect the firms inventories and cash from pilfering
Establishing a self-insurance health program that covers all employees
Installing burglar alarms, security guards, and even guard dogs to protect warehouses from burglary
Purchasing and using safety equipment, from hand guards on machinery to goggles and safety shoes for individuals
Risks that insurance firms will not assume are called
uninsurable risks
insurable risks
endorsements
pure risks
To be insurable, a risk must have potential losses that are
under the control of the insured
centrally located
predictable
unmeasurable
Without the payment of premium, the insurance contract cannot start
True Statement
False Statement
There is no hazards of direct competition to conventional banking products
True Statement
False Statement
