1. The Process of transferring risk is called a. Insurance * b. Underwriting c. Marketing d. Security 2.

One can handle the risk by retaining with him or transferring to a. Surveyor b. Security c. Insurer * d. Insured 3. Insurance Company collects premium from people exposed to risk and put the money in a. Water pool b. Risk pool * c. Pension Fund d. Security 4. As Income provider to your family you are exposed to risk a. All the below three * b. Family Protection c. Future need d. Child care 5. The insured has to pay consideration to insurer is called a. Premium * b. Dividend c. Sum Assured d. Interest 6. The insurance relates to the protection of the economic value of assets which are a. Property b. Human life c. Above both * d. None of above

7. Which sentence is correct? a. Insurance can prevent the insured event b. Insurance cannot prevent the insured event * c. Both sentences are correct d. Both sentences are incorrect 8. The act buying insurance is an act of a. Risk transfer * b. Risk retention c. Risk minimizing d. Risk abolition 9. Insurance provide protection against losses due to a. Natural events b. Man made events c. Third part events d. Above all * 10. a. b. c. d. 11. a. b. c. d. 12. a. b. c. d. 13. a. b. c. d. Which sentence is correct? Insurance is possible only if the event happen at random The cause of loss is called peril Both Sentences are correct * Both Sentences are incorrect Insurance Organizations are divided into Life Non-life Business Life Non-life--- Re-insurance * Above both are correct Above both are incorrect Life Insurance does not cover Pension Plan Risk Plan Health Plan Medi-claim Plan * Re-insurance Company is an insurer for taking risk Human life risk Properties risk Cattle life risk Other insurers risk *

14. a. b. c. d. 15. a. b. c. d. 16. a. b. c. d. 17. a. b. c. d. 18. a. b. c. d. 19. a. b. c. d.

Which is not in insurance market constitution? Agents Underwriter Security Officer * Actuary Sales without any intermediary is called Direct Marketing Tele Marketing E-sales Marketing * Corporate Marketing General Insurance does not cover Liability Insurance Marine Insurance Travel Insurance Human life insurance * The history of insurance in India can be divided into One phase Two phase Three phase * Four phase Life insurance Agents deal with sale of Basic life plan e.g. Term Assurance & Whole life Insurance. Other Financial products i.e. Health Insurance and Accidental Death Both are incorrect Both are correct * Which sentence is correct? Agents should disclose all the information relating to insurance company Agents should act in the interest of the Insurance Company Both are incorrect Both are correct *

20. a. b. c. d. 21. a. b. c. d. 22. a. b. c. d. 23. a. b. c. d. 24. a. b. c. d.

Which sentence is correct? Agent needs to take steps to keep the business he has secured for the Company Agent needs to make every attempt to ensure that the Policyholder pay the premium within required time Both are incorrect Both are correct * To become an Agent one has to pass through To submit necessary forms only To pay necessary fees To undergo prescribed training & pass the examination All the above steps * Insurance Company invests the fund in Road & Buildings Fort & Powers Water & Drainage All the above * Insured has to pay premium for Short term Long term Both term * None of the above By paying premium one can have benefit of Investment of savings Tax benefits Planning for long life Above all *

25. If premium are not paid regularly one will loose the benefit of policy a. Partial b. Full c. For some period till revival * d. Above all

26. a. b. c. d. 27. a. b. c. d. 28. a. b. c. d. 29. a. b. c. d. 30. a. b. c. d.

Insurance business provides benefits to Policyholder life cover National development Social security Above all * Policy holder has choice for making complaint to Ombudsman IRDA Grievance cell Grievance Redressal System Above all * Insurance Companies are governed by Insurance Act 1938 Companys Act 1956 IRDA Act Above all * One can have insurance policy from Agent Bank Assurance Direct Marketing Above all * Micro Insurance Scheme for Low income group people * High income group people Both above sentences are correct Both above sentences are wrong

IC- 33/2011 Questions for chapter 2 1. The amount of insurance depends on a. The Peril b. The risk c. Neither the peril nor the risk d. Both the peril and risk* 2. In the case of life insurance the risk a. Can be avoided to some extent* b. Cannot be avoided c. Are avoidable through medical science d. Are avoidable through proper food habits 3. The proposal form and personal statement contain information relevant to determine the a. Level of risk b. Moral hazard c. Physical hazard, d. All three above are correct* 4. Living too long a. Blessing b. Curse c. Risk* d. None of above 5. Following type of risk are insurable risk a. Financial, pure and particular risk* b. Past risk c. Gambling risk d. None of the above three

6. As a general principal, insurance is only available for, a. Risk that are uncertain* b. To make the loss Good c. To compensate the loss d. None of the above three 7. The main component of risk are, a. Uncertainty, level of risk, peril and hazard* b. Heavy loss c. Future loss d. None of above 8. Insurance works on the principal of a. Sharing b. Probabilities c. Large numbers d. All above three* 9. Which is one of the following statement is correct, a. Pooling of risk is one of the fundamental principal of insurance* b. In insurance pooling of risk never taken into account c. In insurance pooling of risk sometimes considered d. All above statements are correct 10. A human being is, a. An economic asset b. An income earning asset c. Is the perishable asset d. All three are correct*