Risk Management Multiple Choice Questions and Answers for Practice

16. A physical hazard is a condition stemming from the material characteristics of an object

1. True Statement
2. False Statement

17. Risk management is synonymous with Insurance mangement

1. True Statement
2. False Statement

18. ACV stands for actual cash value

1. True Statement
2. False Statement

19. The first insurance was established in Anthens

1. True Statement
2. False Statement

20. A risk manager can ignore those pure risk that are not insurable

1. True Statement
2. False Statement

21. There is no hazards of direct competition to conventional banking products

1. True Statement
2. False Statement

22. Without the payment of premium, the insurance contract cannot start

1. True Statement
2. False Statement

23. To be insurable, a risk must have potential losses that are

1. under the control of the insured
2. centrally located
3. predictable
4. unmeasurable

24. Risks that insurance firms will not assume are called

1. uninsurable risks
2. insurable risks
3. endorsements
4. pure risks

25. Which of the following is not a condition for an insurable loss?

1. Using accurate and effective accounting and financial controls to protect the firms inventories and cash from pilfering
2. Establishing a self-insurance health program that covers all employees
3. Installing burglar alarms, security guards, and even guard dogs to protect warehouses from burglary
4. Purchasing and using safety equipment, from hand guards on machinery to goggles and safety shoes for individuals

26. A type of insurance that combines protection with an investment plan is called

1. whole life
2. endowment
3. limited-pay
4. universal

27. The general insurance corporation is holding company, which has ...............subsidiary companies

1. 10
2. 12
3. 4
4. 6

28. LIC (Mauritius) ltd. Was set in ...............

1. 1990
2. 2001
3. 2009
4. 1998

29. The idea of insurance ombudsman was mooted in the year

1. 1998
2. 1938
3. 1986
4. 1990

30. Insurance Ombudsman is open to all individuals whose claim amount is less than

1. 1 Crore
2. 20 crores
3. 20 lakhs
4. 10 lakhs