Banking and Insurance MCQs and Notes

M

Mr. Dubey • 52.52K 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 • 52.52K 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 • 52.52K 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 • 52.52K 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 • 52.52K Points
Coach

Q 35. Insurance works on the principle of

(A) Trust

(B) Sharing

(C) Randomness

(D) All the above

M

Mr. Dubey • 52.52K Points
Coach

Q 36. Insurance works on the principle of

(A) Sharing

(B) Probabilities

(C) Large numbers

(D) All the above

M

Mr. Dubey • 52.52K 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 • 52.52K 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 • 52.52K 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 • 52.52K 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