Insurance and Risk Management MCQs

You will cover here Multiple Choice Questions related to Business Insurance and Risk Management. Take your time and prepare yourself to achieve success

1) The Insurance is a ______________

(A) Contract

(B) Uncertainty

(C) Peril

(D) Hazard

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (A) Contract“] [/efaccordion]

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

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (C) Risk Retention“] [/efaccordion]

3) An alternative approach to the check list is ______________

(A) Threat Analysis

(B) Event Analysis

(C) Operability Study

(D) Minimum Level Analysis

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (A) Threat Analysis“] [/efaccordion]

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

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (A) Risk Control“] [/efaccordion]

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)minimum frequency and no loss severity.

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (B) low frequency and high loss severity.“] [/efaccordion]

6) The risk manager maybe able to identify the new ventures involved in ______________.

(A) Pure risk

(B) Group Risk

(C) Speculative risk

(D) Particular risk

[efaccordion id=”01″] [efitems title=”Answer” text=”(A) Pure risk“] [/efaccordion]

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

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (C) Non-Insurance Transfer“] [/efaccordion]

8) The Person whose risk is insured is called ______________:

(A) Insured

(B) merchandiser

(C) marketer

(D) Agents

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (A) Insured“] [/efaccordion]

9) That which is designed to improve the information on which decisions are take to reduce risk is :

(A) Transfer

(C) Costs

(D) Deflation

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (B) Research“] [/efaccordion]

10) Uncertain events are broadly classified as:

(A) Predictable and Unpredictable.

(B) Possible and Impossible

(C) Natural and Artificial.

(D) Rare and Continuous

[efaccordion id=”01″] [efitems title=”Answer” text=”Option (A) Predictable and Unpredictable.“] [/efaccordion]

 

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