INSURANCE

(Introduction to Insurance)
UNIT - 1
LONG QUESTIONS:

Q.1) Give the concept of Risk. Also explain the various kinds of risks.
Q.2) Give the meaning and objects of insurance. What are its advantages?
Or,
Define Insurance. What is the importance of insurance?
Or,
Give the origin of insurance and state its merits and significance.
Or,
“Insurance is not to prevent risk, but to indemnify the losses arising from a certain risk”. Comment.
Q.3) Give the scope of insurance.
Or,
Give short notes on Marine, Fire, Life and General insurance.
Or,
Describe the main kinds of insurance and examine briefly the nature of risks protected by each kind of insurance.
Q.4) Give the comparative statement between Life Insurance, Fire Insurance and General Insurance.
Q.5) State and explain the various functions of insurance.
Q.6) State and explain the fundamental principles of insurance.
Q.7) Give a chart showing the classification of insurance.
Q.8) What do you mean by Re-insurance and Double insurance? Give the difference between the two.
Q.9) Give a brief note on insurance organisations in India.

MEDIUM QUESTIONS:
1. Write a note on doctrine of subrogation.
2. What are the essential requirements of the doctrine of contribution?
3. Write a note on ‘Proximate Cause’.
4. What do you understand by principle of indemnity?
5. Give a brief idea about “Insurable Interest”.
6. Distinguish between Co-insurance and Re-insurance.
7. “Proximate cause is not very essential in case of life insurance contract”. Explain in detail.

SHORT QUESTIONS:
Explain the following terms serially in not more than two sentences each:

 Insurance
 Utmost good faith
 Risk
 Premium
 Insurable Risk
 Insurable Interest
 Indemnity
 Cause Proxima
 Subrogation

Answer the following questions serially in not more than two sentences each:
1. Name three important kinds of insurance.
2. Name the oldest form of insurance?
3. What is the subject matter of insurance?
4. What is risk?
5. Name some types of risks?
6. Does insurance eliminate the risks?
7. Who is an insurer ?
8. Who is an insured?
9. What is the difference between assurance &insurance?
10. Write the full form L .I. C. & G. I. C.
11. What is the primary function of insurance?
12. What is the secondary function of insurance?
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13. In which year insurance was nationalized in India?

14. In which year general insurance was nationalized in India?
15. What is Llyod’s Association?
16. Does indemnity apply to insurance?
17. Define insurance contract.
18. What is an insurance policy?
19. What is policy money?
20. What is premium?
21. What is days of grace?
22. What do you mean by Assurance?
23. What is self-insurance?
24. Write two basic principles of insurance.
25. What is good faith?
26. What is a material fact?
27. Give two examples of material facts of life insurance.
28. What is Caveat Emptor?
29. What is insurable interest?
30. Write two cases where insurable interest is present.
31. What do you mean by reinsurance?
32. At what time insurable interest must exist?
33. Give two cases where insurable interest does not exist.
34. In which type of insurance principle of indemnity is not applicable?
35. What is the Doctrine of Subrogation?
36. What is mitigation of loss?
37. What is cause proxima?
38. When does the risk start?
39. What do you mean by Double Insurance?
40. Who is a Co-insurer?
41. What is a contingent contract?
42. Which type of insurance contains contingent contract/
43. Write two important functions of insurance.
44. Name two types of hazards.
45. Name two insurance organisations.
46. What are wagering contracts?
47. Is insurance a wagering contract?
48. What do you mean by insurable risk?
49. Insurance is not gambling. Explain.
50. What do you mean by Guarantee Insurance?
51. What is beauty insurance?
52. Why did the Govt. refuse to nationalize GIC in 1956?
53. Write the name of two subsidiary companies of GIC.
54. What is the socio-economic significance of Insurance?

STATE ‘TRUE’ OR ‘FALSE’ :

a. A husband has insurable interest in the life of his wife.
b. A wife has insurable interest in the life of her husband.
c. A father has insurable interest in the life of his son.
d. A dependent son has insurable interest in the life of his father.
e. A man has insurable interest in the life of his friend.
f. A borrower has insurable interest in the life of his lender.
g. A doctor has insurable interest in the life of his patient.
h. A mill owner has insurable interest in the mill.
i. A shopkeeper has insurable interest in his shop.
j. A shipping company has insurable interest in the ship.
k. A student has insurable interest in the life of his dear teacher.
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GIVEN BELOW IS A LIST OF PERSONS. WRITE THE INSURABLE INTEREST AGAINST EACH PERSON:

PERSONS Insurable Interest

1. Whole undisputed owner
2. Agent
3. Trustee
4. Bailees (temporary possessors)
5. Mortgagor
6. Husband
7. Wife
8. Father depending on son/daughter
9. Creditor
10. Partner
11. Employer
12. Surety (guarantor)
13. Owner of ship
14. Crew of ship
15. Cargo owners
(Life Insurance)
UNIT - 2
LONG QUESTIONS:
Q.1) Give the nature and fundamental principles of life insurance contract.
Or,
State and explain the characteristic features of life insurance contract.
Or,
What do you mean by life insurance? Give the essential elements of a life insurance contract.
Q.2) What are the different types of life insurance policies?
Q.3) Give the importance and uses of life insurance.
Q.4) State and explain the procedure for effecting life insurance.
Or,
What are the various stages for taking the life insurance policies?
Q.5) State and explain the various policy conditions and privileges of a policy holder in case of life insurance.
Q.6) Explain the various types of annuity contracts.
Q.7) Discuss the various methods of Premium Computation.
Q.8) Explain the various factors affecting risk in case of life insurance policies.
Q.9) How the payment of claim is made by L.I.C.? Describe the steps taken by L.I.C. to hasten the claim settlement.
Q.10) Discuss the role of L.I.C. of India in the service of common man and the nation.

MEDIUM QUESTIONS :
1. What is the difference between annuity contracts and life insurance policies?
2. Discuss the service rendered by L.I.C. to the under privileged in India.
3. Write a note on Janata Personal Accident Policy.
4. Why is level premium plan is considered superior to natural premium plan?
5. ‘Life insurance policies carry surrender value but fire and marine insurance policies do not carry surrender value’. Explain.
6. Write a short note on Lloyd’s Association.
7. Comment on the following statement:
a. Insurance protects the wealth of the society.
b. Insurance facilitates the economic growth of the country
c. Insurance is able to curtail inflation.

SHORT QUESTIONS:
Explain the following terms serially in not more than two sentences each:
1. Life insurance contract .
2. Premium table.
3. Proposal form.
4. Claim form.
5. Whole life policy.
6. Endowment policy
7. Single life annuity
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8. Annuity certain.
9. Mortality table .
10. Assignment
11. Life fund.

Answer the following questions serially in not more than two sentences each:
1. Dose life insurance provide peace of mind?
2. Where is the head office of the L.I.C. located?
3. What is meant by the three –tier-structure of L.I.C.?
4. Give the examples of materialist in contrast of life insurance?
5. Write two utilities of Life insurance.
6. In which year Life Insurance was nationalized?
7. Write two essential elements of Life Insurance.
8. Which insurance contains the elements of investment and protection?
9. What is occupational hazard?
10. What are the sources of knowing the proof of age in case of a life policy?
11. What is standard life?
12. What is sub-standard life?
13. What is uninsurable life?
14. What is lien?
15. What are residential hazards?
16. What is moral hazard?
17. Which life policy contains a less payment of premium?
18. Which life policy entitles the holder to share profit of the company?
19. What is pure Endowment policy?
20. What is Double Endowment policy?
21. What is a convertible term policy?
22. What is a convertible whole life policy?
23. What is an Annuity?
24. Who is an Annuitant?
25. What is consideration?
26. What is an immediate annuity?
27. What is deferred annuity?
28. What is annuity due?
29. What is natural premium plan?
30. What is level premium plan?
31. What is Mortality Card?
32. What is Death Card?
33. What is net premium?
34. What is loading?
35. What is additional assurance?
36. Give two types of alterations in the life policy.
37. What do you mean by Assignment?
38. What do you mean by Nomination?
39. What are the sources of knowing the proof of death?
40. Name two documents that are necessary for providing the title.
41. Why a life policy is lapsed?
42. What is surrender value?
43. What is the formula for calculating the paid up value of a life policy?
 Marine Insurance
UNIT -3

LONG and MEDIUM QUESTIONS:

Q.1) Give the meaning and definition of Marine Insurance. State the subject matter of marine insurance. Describe its
characteristics.
Q.2) What is Marine Insurance? State the Principles of Marine Insurance.
Q.3) Discuss various types of marine policies.
Q.4) Give a note on various kinds of Marine Losses and describe the application of average clause.
Q.5) Outline various implied warranties in Marine Insurance.
Q.6) Explain various clauses or conditions in Marine Insurance Policy.

SHORT QUESTIONS:

Explain the following terms serially in not more than two sentences each:
1. Voyage policy . 4. Sea worthies.
2. Implied warranties. 5. Inch maree clause.
3. SLT clause. 6. General average less.

Answer the following questions serially in not more than two sentences each:
1. What do you mean by cargo insurance?
2. What dose hull insurance cover?
3. What are the subject matters of marine insurance?
4. Name the duration clause?
5. Name two types of marine losses?
6. Write the full form of 1) FGA ,2) RDC .
7. Dose the principle of cause proxima apply to marine insurance?

Fire Insurance
UNIT -4

LONG and MEDIUM QUESTIONS:

Q1) Define fire insurance. What is the meaning of fire. Give the subject matter of fire insurance.
Q2) What is the procedure of taking a fire insurance policy?
Q3) What are the fundamental principles of fire insurance contract?
Q4) What are the various kinds of fire insurance?
Q5) Name the clauses or conditions in a fire policies?
Q6) what are the methods of reinsurance?
Q7) Write the significance of average clause in fire insurance.
Q8) What is the procedure for settlement of fire insurance claim?

SHORT QUESTIONS:

Explain the following terms serially in not more than two sentences each:
1. Ignition. 5. Covered note.
2. Fire insurance. 6. Under insurance.
3. Friendly fire. 7. Valued policy.
4. Hostile fire. 8. Comprehensive policy.

Answer the following questions serially in not more than two sentences each:
1. What do you mean by physical Hazard in fire insurance?
2. Name the two companies which conduct fire insurance?
3. Name two essential conditions, which an insurable interest in fire insurance must fulfil?
4. Name a loss, which is not said to have been caused by fire.
5. What due you mean by fire in fire insurance?
6. Write two nights of insurer after fire in fire insurance?
7. What is meant by assignment of fire policy?

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8. Is fire insurance a contact of indemnity?

9. Does insurable interest apply to fire insurance?
10. When insurable interest should east in fire insurance?
11. Name two important fire insurance policies.
12. What type of policy is suitable fire exporters &Importers?
13. Which clause is intended to penalize fire under insurance?
14. What is intention?
15. What is a moral Hazard?

Misc. Insurance
UNIT -5

LONG and MEDIUM QUESTIONS:

Q.1) Write a note on Motor Vehicle Insurance. Give the classification of motor vehicle insurance. Also state the procedure for
effecting Motor vehicle insurance.
Q.2) State and explain the rules relating to Personal Accident Insurance. State its types and give the procedure for effecting
Personal Accident Policy.
Q.3) Write a note on Janata Insurance policy.
Q.4) What do you mean by Burglary Insurance policy? Give its various types. State the procedure for effecting Burglary
Policy.
Q.5) Write a short notes on Baggage Policy.
Q.6) What do you mean by Fidelity Insurance? State the kinds of Fidelity Insurance policies.

SHORT QUESTIONS:

Answer the following questions serially in not more than two sentences each:
1. Give the classification of motor vehicles for its insurance.
2. What kinds of risks are caused under motor vehicle insurance?
3. What does personal accident insurance provide?
4. Name some cases in which the insurance company is not liable to indemnify the insured.
5. What does burglary insurance cover?
6. What do you mean by Baggage Policy?

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 BASANTA ACADEMY
COMMERCE EDUCATION
Housing Board, Berhampur, Ph: 208459

MODULAR TEST TIME: 3 hrs.

INSURANCE MARKS: 100
+2, 1st Year COMMERCE DATE: 21-03-2002

GROUP – A

Q.1) Explain the following terms serially in not more than two sentences each: (1 x 10)

 Insurance  Insurable Interest

 Utmost good faith  Indemnity
 Risk  Cause Proxima
 Premium  Subrogation
 Insurable Risk  Hazards

Q.2) Answer the following questions in not more than two sentences each: (1 x 10)

1. Name the oldest form of insurance?

2. Name some types of risks?
3. Who is an insurer?
4. What is the difference between Assurance & Insurance?
5. Write the full form L .I. C. & G. I. C.
6. Give two cases where insurable interest does not exist.
7. Name two types of hazards.
8. Name two insurance organisations.
9. What is beauty insurance?
10. Write the name of two subsidiary companies of GIC.

GROUP – B

Q.3) Answer any TEN from the following: ( 3 x 10)

a. Write a note on ‘Proximate Cause’.
b. What do you understand by principle of indemnity?
c. Give a brief idea about “Insurable Interest”.
d. “Proximate cause is not very essential in case of life insurance contract”. Explain.
e. What are the essential requirements of the doctrine of contribution?
f. Write a note on doctrine of subrogation.
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g. Write a note on Double Insurance.

h. What do you understand by Re-insurance?
i. Write the history of fire insurance.
j. Give the scope of Insurance.
k. What do you mean by insurable and uninsurable risk?
l. STATE ‘TRUE’ OR ‘FALSE’ :
 A husband has insurable interest in the life of his wife.
 A wife has insurable interest in the life of her husband.
 A father has insurable interest in the life of his son.
 A dependent son has insurable interest in the life of his father.
 A man has insurable interest in the life of his friend.
  A borrower has insurable interest in the life of his lender.
m. GIVEN BELOW IS A LIST OF PERSONS. WRITE THE INSURABLE INTEREST AGAINST EACH PERSON:
Persons Insurable Interest
 Whole undisputed owner
 Agent
 Trustee
 Bailees (temporary possessors)
 Mortgagor
 Husband

GROUP – C

Answer any four from the following: (12 ½ x 4)

4. Give the meaning and objects of insurance. What are its advantages?
5. Give the comparative statement between Life Insurance, Fire Insurance and General
Insurance.
6. State and explain the various functions of insurance.
7. State and explain the fundamental principles of insurance.
8. Give a brief note on insurance organisations in India.