Insurance - Study Mode

[#721] A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependants is called _________
Correct Answer

(C) Group Insurance

Explanation

Solution: A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependants is called Group Insurance. A group insurance policy gives you advantages of standardised coverage and very competitive premium rates.

[#722] A seller’s market in which insurance is expensive and in short supply is termed as _________
Correct Answer

(C) Alternative Market

Explanation

Solution: A seller’s market in which insurance is expensive and in short supply is termed as Alternative Market. A term commonly used in risk financing to refer to one of a number of risk funding techniques is known as Alternative Market.

[#723] An environment where insurance is plentiful and sold at a lower cost, also known as a Buyers market is called _________
Correct Answer

(B) Soft Market

Explanation

Solution: An environment where insurance is plentiful and sold at a lower cost, also known as a Buyers market is called Soft Market.

[#724] The concept of insurance involves a transfer of
Correct Answer

(D) Risk

Explanation

Solution: The concept of insurance involves a transfer of Risk. A transfer of risk, considered the underlying tenet of insurance transactions, is a risk management technique where risk shifts from one party to another.

[#725] Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the insurance market do these products normally fall into?
Correct Answer

(C) Non-life insurance in both cases

Explanation

Solution: Rakesh recently bought a health insurance policy and a personal accident policy. The insurance market fall in Non-life insurance in both cases.