Banking and Insurance MCQs and Notes

M

Mr. Dubey • 95.58K Points
Coach

Q 31. _________ is a contract between two insures i.e. original insurer and another insurer.

  • (A) Insurance
  • (B) Reinsurance
  • (C) Policy
  • (D) Premium

M

Mr. Dubey • 95.58K Points
Coach

Q 32. A human being

  • (A) Is an economic asset
  • (B) Is an income earning asset
  • (C) Is a perishable asset
  • (D) All the above

M

Mr. Dubey • 95.58K Points
Coach

Q 33. Insurance benefits replace

  • (A) All physical losses in full
  • (B) All physical losses partially
  • (C) The monetary losses in full
  • (D) The monetary losses, but only to some extent.

M

Mr. Dubey • 95.58K Points
Coach

Q 34. The amount of insurance depends on

  • (A) Peril
  • (B) The risk
  • (C) Neither the peril nor the risk
  • (D) Both the peril and the risk

M

Mr. Dubey • 95.58K Points
Coach

Q 35. Insurance works on the principle of

  • (A) Trust
  • (B) Sharing
  • (C) Randomness
  • (D) All the above

M

Mr. Dubey • 95.58K Points
Coach

Q 36. Insurance works on the principle of

  • (A) Sharing
  • (B) Probabilities
  • (C) Large numbers
  • (D) All the above

M

Mr. Dubey • 95.58K Points
Coach

Q 37. Insurance is necessary because

  • (A) Assets depreciate over time and through usage
  • (B) Assets may be damaged by external causes
  • (C) Assets require regular maintenance
  • (D) None of the above

M

Mr. Dubey • 95.58K Points
Coach

Q 38. Insurance compensate losses

  • (A) By replacing the original asset
  • (B) To the full extent of lost income
  • (C) Only to the extent of insured amount
  • (D) All the above

M

Mr. Dubey • 95.58K Points
Coach

Q 39. Insurance is meant to

  • (A) Prevent specified events
  • (B) Prevent damage to assets from specified events
  • (C) Compensate for losses from specified events
  • (D) Rebuild the assets lost because of specified events

M

Mr. Dubey • 95.58K Points
Coach

Q 40. The principle of _______ensures that an insured does not profit by insuring with multipleinsurers.

  • (A) Subrogation
  • (B) Contribution
  • (C) Indemnity
  • (D) All of the Above

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