MCQOPTIONS
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MCQOPTIONS
This section includes 248 Mcqs, each offering curated multiple-choice questions to sharpen your Software Engg knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
The Concept of Insurance is ___________ |
| A. | to share losses by many |
| B. | to make money out of death |
| C. | to earn interest |
| D. | to earn a status |
| Answer» B. to make money out of death | |
| 52. |
Spreading of risk otherwise termed as _________ |
| A. | Shifting of risk. |
| B. | Acceptance of risk. |
| C. | Reduction of risk. |
| D. | Spreading of risk. |
| Answer» E. | |
| 53. |
The proportion of the risk which the direct insurer holds on his own account refers to_______ |
| A. | Line |
| B. | Retention |
| C. | Retrocession |
| D. | Ceding insurer |
| Answer» C. Retrocession | |
| 54. |
…………….. is a policy where the insurer undertakes to make good the loss upto the amountmentioned in the policy |
| A. | Specific policy |
| B. | Valued policy |
| C. | Average policy |
| D. | None of these |
| Answer» D. None of these | |
| 55. |
The principle of prevention is better than cure refers to __________ |
| A. | Avoiding of risk. |
| B. | Reduction of risk. |
| C. | Transferring of risk. |
| D. | Shifting of risk. |
| Answer» B. Reduction of risk. | |
| 56. |
Who pays premium under social security group insurance? |
| A. | Every member of the group |
| B. | Government |
| C. | LIC |
| D. | None of the above |
| Answer» D. None of the above | |
| 57. |
Duty to minimize loss is incorporated in the policies through _________ |
| A. | warranties. |
| B. | Conditions. |
| C. | clauses. |
| D. | declaratives |
| Answer» C. clauses. | |
| 58. |
Which of the following is a method of risk identification. |
| A. | Insurance |
| B. | Standard deviation method |
| C. | Checklist method |
| D. | None of these |
| Answer» D. None of these | |
| 59. |
Master policy is issued for _______ |
| A. | Term insurance schemes |
| B. | permanent insurance |
| C. | individual insurance |
| D. | group insurance schemes |
| Answer» E. | |
| 60. |
Who pays premium under social security group insurance scheme? |
| A. | Every member of the group |
| B. | Panchayat of the village |
| C. | 50% by a social security fund maintained by LIC of India |
| D. | LIC of India |
| Answer» D. LIC of India | |
| 61. |
IRDA Act passed in the year………….. |
| A. | 1972 |
| B. | 1999 |
| C. | 1989 |
| D. | 2000 |
| Answer» C. 1989 | |
| 62. |
Willingness to retain whole or part of a given risk is called………….. |
| A. | Risk retention |
| B. | Risk carrying |
| C. | Risk bearing |
| D. | None of the above |
| Answer» B. Risk carrying | |
| 63. |
When interest rates fall, the tabular premium rates are likely to _______ |
| A. | increase |
| B. | decrease |
| C. | remain the same |
| D. | equal |
| Answer» B. decrease | |
| 64. |
If the interest rates in the market are higher, then cost of insurance _________. |
| A. | Increases. |
| B. | moderate. |
| C. | Decreases. |
| D. | no change. |
| Answer» D. no change. | |
| 65. |
Except life assurance the maximum term of other insurance is _________ |
| A. | 12 months. |
| B. | 24 months. |
| C. | 6 months. |
| D. | 36 months. |
| Answer» B. 24 months. | |
| 66. |
Risks are not suited to treatment by insurance refers to ____________ |
| A. | Static risk. |
| B. | Property risk. |
| C. | Dynamic risk. |
| D. | Liability risk. |
| Answer» D. Liability risk. | |
| 67. |
Risk management follows a systematic process which involves _______ steps. |
| A. | two. |
| B. | three. |
| C. | four. |
| D. | five. |
| Answer» E. | |
| 68. |
Premium fixed by insurance company must be sufficient to _____ |
| A. | meet the claims |
| B. | cover the expenses |
| C. | both (a) and (b) |
| D. | none of these |
| Answer» D. none of these | |
| 69. |
Risk insured against death is a contract of _________ |
| A. | assurance |
| B. | agreement |
| C. | indemnity |
| D. | disagreement |
| Answer» B. agreement | |
| 70. |
Risk which can be measured using numerical scale are known as |
| A. | Quantifiable risk |
| B. | Static risk |
| C. | Dynamic risk |
| D. | Speculative risk |
| Answer» B. Static risk | |
| 71. |
Reinsurance also termed as ______ |
| A. | insurance of insurance |
| B. | reinsurance of reinsurance |
| C. | double insurance |
| D. | reinsurance |
| Answer» B. reinsurance of reinsurance | |
| 72. |
Any risk involved a situation where there is a possibility of gain refers to ________ |
| A. | Liability risk. |
| B. | Personal risk. |
| C. | Pure risk. |
| D. | Speculative risk. |
| Answer» E. | |
| 73. |
The concept of bancassurance originated in ___________. |
| A. | France. |
| B. | U.S.A. |
| C. | Engla |
| Answer» B. U.S.A. | |
| 74. |
Property damaged because of earthquake is…………risk |
| A. | Risk for general insurance |
| B. | Non insurable risk |
| C. | Property risk |
| D. | None of the above |
| Answer» D. None of the above | |
| 75. |
_________ is concerned with the conversion of a firm’s asset and earning power againstrisks of accidental loss. |
| A. | Risk retention. |
| B. | Risk management. |
| C. | Risk control. |
| D. | Risk identification. |
| Answer» C. Risk control. | |
| 76. |
First private life insurance company was registered in India in………. |
| A. | 1999 |
| B. | 2000 |
| C. | 2002 |
| D. | 1978 |
| Answer» C. 2002 | |
| 77. |
In static risk............. |
| A. | Losses cannot be predicted |
| B. | Losses can be predicted |
| C. | Losses are not easily predictable |
| D. | None of these |
| Answer» C. Losses are not easily predictable | |
| 78. |
Direct or Consequential losses refer to _________ |
| A. | Dynamic risk. |
| B. | Particular risk. |
| C. | Property risk. |
| D. | Pure risk. |
| Answer» D. Pure risk. | |
| 79. |
Speculative risk is a situation in which…………………… is possible |
| A. | Loss |
| B. | Profit |
| C. | Either a profit or loss |
| D. | None of the above |
| Answer» D. None of the above | |
| 80. |
Consideration on the part of the life insured in respect of a life insurance contract is _______ |
| A. | a promise to take a new policy |
| B. | the insured promise to pay the premium under the policy |
| C. | the payment made towards premium by the insured |
| D. | proposal completed and signed by the person |
| Answer» C. the payment made towards premium by the insured | |
| 81. |
_______ means those risks which involve a situation where there is a possibility of gain. |
| A. | Personal risk. |
| B. | Speculative risk. |
| C. | Other risk. |
| D. | Liability risk. |
| Answer» C. Other risk. | |
| 82. |
_______ policy is which covers the risk during all situations. |
| A. | Floating . |
| B. | Wagering. |
| C. | Valu |
| D. | Mixed |
| Answer» E. | |
| 83. |
…………..is concerned with the conversion of a firms asset and earning power against risk ofaccidental loss. |
| A. | Risk retention |
| B. | Risk management |
| C. | Risk control |
| D. | Risk identification |
| Answer» E. | |
| 84. |
…………. Refers to a situation where outcome is not certain |
| A. | Uncertainty |
| B. | Loss |
| C. | Insurance |
| D. | None of the above |
| Answer» B. Loss | |
| 85. |
State which one of the following statement is correct? |
| A. | A trade union can take out a group insurance policy |
| B. | The cover for an employee can be equal to his age multiplied by a fixed number |
| C. | Both the statements above are correct |
| D. | Both the statements above are wrong |
| Answer» D. Both the statements above are wrong | |
| 86. |
As the age increases risk on the life _______. |
| A. | Increases. |
| B. | Decreases. |
| C. | does not change. |
| D. | Moderate. |
| Answer» B. Decreases. | |
| 87. |
The net premium will be ______ |
| A. | less than the risk premium |
| B. | more than the risk premium |
| C. | calculated by adding expenses to the risk premium |
| D. | more than the pure premium |
| Answer» B. more than the risk premium | |
| 88. |
The term ‘run off’ or ‘fully declared’ refers to ___________ |
| A. | Floating policy. |
| B. | Wagering policy. |
| C. | Builders risk policy. |
| D. | Open cover policy. |
| Answer» B. Wagering policy. | |
| 89. |
………… another name of fundamental risk |
| A. | Systematic risk |
| B. | Interest rate risk |
| C. | Group risk |
| D. | Loss |
| Answer» D. Loss | |
| 90. |
Pure risk situation are those where there is a possibility of…………. |
| A. | Loss or no loss |
| B. | Loss |
| C. | Variation |
| D. | None of the above |
| Answer» B. Loss | |
| 91. |
What is meant by a claim under an insurance policy? |
| A. | Any demand made by the policy holder on the insurer |
| B. | A demand to fulfill the policyholders obligations |
| C. | A demand to fulfill the insurer's obligations |
| D. | All the three above |
| Answer» E. | |
| 92. |
Insurance business is based on ___________ |
| A. | Parkinson’s law. |
| B. | Newton’s law. |
| C. | The theory of probability and law of large numbers. |
| D. | Boyle’s law. |
| Answer» D. Boyle’s law. | |
| 93. |
The proportion of the risk which the direct insurer holds on his own account refers to___________ |
| A. | Line. |
| B. | Retention. |
| C. | Retrocession. |
| D. | Ceding insurer. |
| Answer» C. Retrocession. | |
| 94. |
A policy for protecting a group of employees in a firm is called……….. |
| A. | General Insurance |
| B. | State life insurance |
| C. | Group insurance |
| D. | None of the above |
| Answer» D. None of the above | |
| 95. |
For introduction of a group scheme, we need a ______ |
| A. | Large group of persons |
| B. | Small group of persons |
| C. | Homogeneous group |
| D. | Insured group |
| Answer» D. Insured group | |
| 96. |
Insurance cover _______ |
| A. | protects assets |
| B. | prevents loss |
| C. | reduces the impact of loss |
| D. | insurances immorality |
| Answer» D. insurances immorality | |
| 97. |
The reason for charging level premium is _______ |
| A. | risk increases as age increases |
| B. | it is convenient to the policyholders |
| C. | it is convenient to the insurer |
| D. | all the above reasons |
| Answer» E. | |
| 98. |
___________ policy is granted only in respect of stock of inventories of the insured underfire insurance business. |
| A. | Floating. |
| B. | Declarations. |
| C. | Replacement. |
| D. | Valued. |
| Answer» C. Replacement. | |
| 99. |
IRDA refers to_________ |
| A. | Insurance Regulatory Development Authority. |
| B. | Indian Regulatory Development Authority. |
| C. | Institute of Regulatory Development Authority. |
| D. | Insurance Regulatory Development Association. |
| Answer» B. Indian Regulatory Development Authority. | |
| 100. |
An international code of York Antwerp Rules applied to__________ |
| A. | marine losses. |
| B. | losses of fire. |
| C. | losses of crop. |
| D. | losses of human life. |
| Answer» B. losses of fire. | |