Insurance - Study Mode
[#61] Which of the below losses are covered under keyman insurance?
Correct Answer
(B) Losses related to the extended period when a key person is unable to work
Explanation
Solution: Losses related to the extended period when a key person is unable to work are covered under keyman insurance.
[#62] Of 400 houses costing each Rs.20, 000 if on an average 4 houses are damaged in fire causing a total loss of Rs80,000 what should be the annual contribution of each house owner.
Correct Answer
(B) Rs.200
Explanation
Solution: Of 400 houses costing each Rs.20, 000 if on an average 4 houses are damaged in fire causing a total loss of Rs.80,000, Rs.200 should be the annual contribution of each house owner.
[#63] The losses of a few are shared amongst many through the mechanism of –
Correct Answer
(B) Insurance
Explanation
Solution: The losses of a few are shared amongst many through the mechanism of Insurance.
[#64] _________ consists of collecting premiums from numerous individuals to compensate the few who may suffer losses.
Correct Answer
(A) Pooling
Explanation
Solution: Pooling consists of collecting premiums from numerous individuals to compensate the few who may suffer losses. The pooling of risk is fundamental to the concept of insurance.
[#65] Secondary burden of risk consists of _________ and _________ one has to bear if exposed to loss situation.
Correct Answer
(B) Costs, Strains
Explanation
Solution: The secondary burden of risk consists of Costs and Strains one has to bear if exposed to loss situation.