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Insurance Concepts

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is a risk?

a)

Possibility of Financial Loss.

b)

Event that causes a loss to an asset.

2.

Which of the following are the perils in Life Insurance?

a)

Death

b)

Sickness

c)

Accident

d)

Fire

3.

Sitaram loves to go on long drives in his car. One day, he was late to a wedding function. In the rush to reach the wedding destination, he decided to drive at high speed but met with an accident. Which of the following is a hazard?

a)

Drivng the car

b)

Meeting with an accident

c)

Driving at a high speed

4.

Deepak invested in stock market. It is a ..............................risk.

a)

pure

b)

speculative

5.

Insurance does not cover speculative risks. Identify if the statement is true or false.

a)

True

b)

False

6.

Having fire extinguishers and water sprinklers installed and maintained in a factory is an example of which risk management strategy?

a)

Risk Control

b)

Risk Avoidance

c)

Risk Transfer

7.

Which of the following is an example of risk avoidance?

a)

Wearing a helmet while riding a bike

b)

Not purchasing a bike

c)

Riding the bike within specified speed limits

8.

Buying a life insurance policy is an example of risk.........................

a)

avoidance

b)

retention

c)

transfer

9.

Minal purchased a car. As the years pass, the value of the car will depreciate, thus making it a pure risk. Is this risk insurable?

a)

No

b)

Yes

10.

Emotional loss due to the death of a person can be insured. Indentify if the statement is true or false.

a)

True

b)

False