Level of risk is determined by

The probability of the occurrence of a certain event and the extent of losses likely to be suffered due to the occurrence of the event.

Needs of the people for various types of protections.

The various types of risks to which the subject matter of insurance is exposed to

The experience of a company in a particular region.

Q2. A hazard is a condition that either increases the chance that a peril will happen or may cause its effect to be worse. Which hazard
pertainsto the habits and activities of the individual that increase risk and mayalso arise from a state of mind the attitude and
behavior of the individual?

Driving Hazard

Drinking Hazard

Physical Hazards

Moral Hazard

Q3. Which category of insurance has nature of low frequency but high severity?

Marine Insurance

Crop Insurance

Airline Insurance

Life Insurance

Q4. In insurance terms the risk of suffering a disability is best described as what type of risk?

Financial.

Fundamental

Homogenous.

Speculative

Q5. Akshat is a relatively cautious person. In insurance terms this will normally increase the likelihood that he will

be considered an above average insurance risk

be considered a below average insurance risk

require insurance cover

require reinsurance cover

Q6. According to insurance terminology which of the following is correct?

Lung cancer is a hazard whereas smoking is a peril

Smoking is a hazard and lung cancer is a peril

Lung cancer is a peril and smoking is a moral hazard

 Smoking is a moral hazard whereas lung cancer is a peril.

Q7. Which of the following cannot be insured?

Financial risk

Particular risk

Pure risk

Speculative risk

Q8. Pure risks are those risks where there is

Loss or no loss

Gain or no gain

Possibility of any benefits occurring

No Possibility of Gain

Q9. In insurance terms the risk of suffering a disability is best described as what type of risk?

Financial

Fundamental.

Homogenous

Speculative.

Q10. Insurance Companies provide cover only for

Specified Risks

Unspecified risks

Excluded risks

Speculative risks