Insurance - Study Mode
[#651] Characteristics of an individual which impact on risk (hazards) is classified into?
Correct Answer
(B) Physical and moral hazard
Explanation
Solution: Characteristics of an individual which impact on risk (hazards) is classified into Physical and moral hazard. Physical hazards indicate those dangers of the subject matter of insurance which can be ascertained or identified by mere inspection of the risk. Moral hazard indicates those dangers which relate to character, integrity and mental attitude of the insured.
[#652] Women have significantly _________ longevity than men
Correct Answer
(A) Greater
Explanation
Solution: Women have significantly Greater longevity than men. Women live longer than men and this difference in life expectancy is a worldwide phenomenon indicating that human longevity seems strongly influenced by gender defined as the combination between biological sexual characteristics (anatomy, reproductive functions, sex hormones, expression of genes on the X or Y chromosome) and factors related to behaviour, social role, lifestyle and life experiences.
[#653] In which of the following cases moral hazard could be suspected?
Correct Answer
(C) Both A & B
Explanation
Solution: When the age is advanced and large sum insured disproportionate to income moral hazard could be suspected.
[#654] When special reports would be necessary?
Correct Answer
(C) Both A & B
Explanation
Solution: When high sum insured is proposed and when age is advanced special reports would be necessary.
[#655] Which of the following is not a moral hazard?
Correct Answer
(B) A proposer with many dependents taking ins
Explanation
Solution: A proposer with many dependents taking insurance is not a moral hazard. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other.