Insurance Basic Multiple Choice Question MCQ
Categories: OTHERS Multiple Choice Question
Ques 1. Which of the following terms matches closest with ‘Professional indemnity cover’? a. Hospitals Nursing homes b. Insurance Companies c. Commercial Banks d. Fast Moving Consumer Goods e. Practicing Surgeons Ans. e Ques 2.Insurance cannot prevent the occurrence of risk but it provides for the……… a. losses of risk b. occurrence of risk c chance of risk d. none of these Ans. a Ques 3. The document which embodies the contract in insurance is called………… a. security b. policy c. certificate d. none of these Ans. b Ques 4……… principle in insurance means maximum truth. a. subrogation b. causa proxima c. insurable interest d. uberrima fides Ans. d Ques 5. Which of the following terms matches closest with ‘Composite Policy’? a. Shopkeepers’ insurance b. Janatha Personal Accident insurance c. Critical Care Health insurance d. Marine Cargo insurance e. Electronic Equipment insurance Ans. a Ques 6. Members of the Insurance Advisory Committee are drawn to represent the interests of different groups like: a. Surveyors, agents, advocates b. Commerce, transport, c. Consumer fora, industry, intermediaries, d. Research bodies, organisations engaged in safety and loss prevention e. Employees’ association in the insurance sector, agriculture, Ans. a Ques 7. A Surveyor’s role includes: a. Checking the admissibility of the loss b. Quantification of the loss c. Giving comments on the loss d. Suggesting risk management measures e. Reporting major losses to IRDA. Ans. e Ques 8. Which of the following covers is dissimilar to the other four options? a. Loss of Passport b. Loss of Profits c. Loss of checked in baggage d. Delay in receiving checked in baggage e. Cancellation/ Re-routing of scheduled fight Ans. a Ques 9. Which of the following types of insurances is dissimilar to the other four options? a. Builders’ Risks insurance b. Hut insurance c. Crop insurance d. Livestock insurance e. Health insurance Ans. b Ques 10. Which of the following terms matches closest with ‘Asbestosis’? a. Products b. Pension c. Rough Weather d. Workmen’s Compensation e. Long Term Policies Ans. d Ques 11. Regarding ‘Exclusions’ find out the incorrect statement. a. Exclusions are indicated in the policy b. Exclusions are perils or circumstances not covered c. Exclusions limit the coverage under the policy d. Exclusions do not deal with risk coverage e. All the above statements are incorrect. Ans. d Ques 12. Which of the following statements is incorrect in respect of brokers? a. Brokers require to undergo training before being licensed b. Brokers are appointed by insured to take care of their interests c. Brokers have to pass examinations before being licensed d. Brokers should be registered companies or firms e. Brokers are allowed to negotiate with different insurers for the same insured Ans. d Ques 13. Which of the following terms is dissimilar to the other four options? a. Jettison b. Hit and Run c. Sue and Labour d. Salvage e. Contamination Ans. d Ques 14. Which of the following terms is dissimilar to the other four options? a. Post-hospitalisation expenses b. Expenses on treatment of pre-existing diseases c. Reinstatement value d. Funeral expenses e. Ambulance charges Ans. c Ques 15.Principle of utmost good faith is also known as ……….. a. subrogation b causa proxima c. insurable interest d. uberrima fides Ans. d Ques 16…………….principle means that the insured is not entitled to make a profit on his loss. a. subrogation b causa proxima c. indemnity d. uberrima fides Ans. c Ques 17.The purpose of ………. Are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. a. subrogation b causa proxima c. indemnity d. uberrima fides Ans. a Ques 18………..principle in insurance mention the cause of loss must be direct and an insured one in order to claim for compensation. a. subrogation b causa proxima c. indemnity d. uberrima fides Ans. b Ques 19………… principle in insurance mention the assured must have insurable interest in the life or property insured. a. subrogation b causa proxima c. indemnity d. insurable interest. Ans. d Ques 20.The first insurance contract was entered into by European maritime nations in 1347 to accept ……..insurance as a practice. a. life b. vehicle c. marine d. fire Ans. c