Question 1

________ means a premium which remains unchanged through out the life of a policy.&#10;A)Avg. premium&#10;B)Gross premium&#10;C)Total premium&#10;D)Level premium

Accepted Answer

Level premium refers to a premium that remains constant throughout the life of an insurance policy.

Question 2

An exceptionally large risk is known as ________&#10;A)Great risk&#10;B)Jumbo risk&#10;C)Giant risk&#10;D)None

Accepted Answer

"Jumbo risk" is a term used to describe an exceptionally large risk, often in the context of insurance or finance.

Question 3

A person who gains or benefits as per a contract is known as ______&#10;A)Beneficiary&#10;B)Annuitant&#10;C)Assurer&#10;D)None

Accepted Answer

A beneficiary is the person who gains or benefits from a contract, especially in the context of insurance or inheritance.

Question 4

Gross premium means Net premium plus ________&#10;A)Profit&#10;B)Loss&#10;C)Expense&#10;D)Expense loading

Accepted Answer

Gross premium is the total amount paid by the policyholder for an insurance policy, which includes the net premium (the amount needed to cover claims and benefits) plus expense loading. Expense loading covers the insurer's operating costs, such as administrative expenses, commissions, and profit margin.

Question 5

Bronson Company manufactures tools that it sells to wholesalers. Bronson is concerned that it may be unable to collect money the company is owed by the wholesalers. To address this risk, Bronson Company could purchase

A)a fidelity bond.
B)general liability insurance.
C)allied lines insurance.
D)credit insurance.

Accepted Answer

Credit insurance protects businesses against the risk of non-payment by their customers, which directly addresses Bronson Company's concern about being unable to collect money owed by the wholesalers.

Question 6

&#8230;&#8230;&#8230;&#8230;.of India offers a range of credit risk insurance covers to exporters against loss in export of goods and services.&#10;A)RBI&#10;B)LIC&#10;C)ECGC&#10;D)NAIS

Accepted Answer

ECGC (Export Credit Guarantee Corporation of India) offers a range of credit risk insurance covers to exporters against loss in export of goods and services.

Question 7

In India &#8230;&#8230;&#8230;.controls and regulate the rates, advantages , terms and conditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation.&#10;A)IRDA&#10;B)TAC&#10;C)GIC&#10;D)LIC

Accepted Answer

The answer of In India &#8230;&#8230;&#8230;.controls and regulate the rates,...

Question 8

TAC stands for&#10;A)Trade Advisory Corporation&#10;B)Trade Advisory Committee&#10;C)Tariff Advisory Corporation&#10;D)Tariff Advisory Committee

Accepted Answer

TAC stands for Tariff Advisory Committee.

Question 9

&#8230;&#8230;..is pricing of insurance products driven by market forces&#10;A)tariffing&#10;B)de-tariffing&#10;C)equilibrium pricing&#10;D)fixed pricing

Accepted Answer

De-tariffing refers to the removal of fixed tariffs or prices, allowing insurance product prices to be determined by market forces such as supply and demand, rather than being set by a regulatory body or a standard across the industry.

Question 10

&#8230;&#8230;&#8230;&#8230;.is an amount in excess of the value of insurers assets over the amount of liabilities.This amount is prescribed by IRDA.&#10;A)profit&#10;B)goodwill&#10;C)margin&#10;D)solvency margin.

Accepted Answer

The solvency margin is the amount in excess of the value of an insurer's assets over its liabilities, as prescribed by the Insurance Regulatory and Development Authority (IRDA). This ensures that the insurer has enough buffer to meet its long-term obligations.

Question 11

&#8230;&#8230;&#8230;&#8230;are those where a part of the premium is charged for the risk cover and the rest is invested in selected mutual funds as per the choice of the investor.&#10;A)mutual fund insurance&#10;B)unit-linked insurance&#10;C)double insurance&#10;D)partial insurance

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;are those where a part of the...

Deck 9: Insurance Terminology and Risk Management