Insurance - Study Mode
[#376] Government of India transacts life insurance business in India through which of the following:
Correct Answer
(C) Postal Life Insurance
Explanation
Solution: Government of India transacts life insurance business in India through Postal Life Insurance.
[#377] Which of the following is correct? Statement A – Insurance reduces burdens Statement B – Insurance is a system of mutual support. Statement C – Insurance the only method to manage risks.
Correct Answer
(D) A & B correct
Explanation
Solution: Insurance reduces burdens and Insurance is a system of mutual support. Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
[#378] Which of the following can easily be compensated thro’ insurance?
Correct Answer
(A) Primary burden of risk
Explanation
Solution: Primary burden of risk can easily be compensated thro’ insurance. The primary burden of risk consists of losses that are actually suffered by households (and business units), as a result of pure risk events. These losses are often direct and measurable and can be easily compensated for by insurance.
[#379] Which are the methods to manage risks?
Correct Answer
(D) All of the above
Explanation
Solution: Risk Avoidance, Risk Retention and Risk Reduction are the methods to manage risks. There are four main ways to manage risk: risk avoidance, risk transfer, risk reduction and risk retention. Each is applicable under different.
[#380] Risk reduction and control involves steps like -
Correct Answer
(D) All of the above
Explanation
Solution: Risk reduction and control involves steps like Education and training, Making environmental changes, Spreading out items to various locations, etc.