ADC Business Fundamentals

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


Option (A) Contract

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


Option (C) Risk Retention

3) An alternative approach to the check list is ______________

(A) Threat Analysis

(B) Event Analysis

(C) Operability Study

(D) Minimum Level Analysis


Option (A) Threat Analysis

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


Option (A) Risk Control

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.


Option (B) low frequency and high loss severity.

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


(A) Pure risk

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


Option (C) Non-Insurance Transfer

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

(A) Insured

(B) merchandiser

(C) marketer

(D) Agents


Option (A) Insured

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

(A) Transfer

(B) Research

(C) Costs

(D) Deflation


Option (B) Research

10) Uncertain events are broadly classified as:

(A) Predictable and Unpredictable.

(B) Possible and Impossible

(C) Natural and Artificial.

(D) Rare and Continuous


Option (A) Predictable and Unpredictable.


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