Q1. Law of large numbers is worked out by which of the following?

 
Pooling of risk

Maintaining insurable interest

With utmost good faith

Randomness

Q2. Which statement is correct?  

lung cancer is peril and smoking is a hazard

smoking is peril and lung cancer is hazard

Both the statement is correct

Both the statement is incorrect

Q3. Law of large numbers is worked out by which of the following?  

Pooling of risk

Maintaining insurable interest

With utmost good faith

Randomness

Q4. Rishabh Agarwal is a 40 years businessman. He leads a healthylifestyle. Every  

morning he practices yoga and abstains from smoking tobacco and alcohol.
There is a family history of diabetes and both hisparents suffer from it. But
Rishabh himself is not diagnosed withdiabetes. Based on this case which of the
following statement is true?
He can be given insurance as he maintains a healthy lifestyle

He cannot be insured as his parents are diagnosed with diabetes

He cannot be insured as he is 40 years old

He can be given insurance with premium loading

Q5. In insurance terms the risk of suffering a disability is best described as what type  
of risk?
Financial

Fundamental.

Homogenous

Speculative.
Q6. 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.

Q7. Insurance Companies provide cover only for  

Specified Risks

Unspecified risks

Excluded risks

Speculative risks

Q8. Insurance relates to  

Avoidance of risk

Pooling of risk

Protection of economic value of assets

Minimisation of risk

Q9. Which category of insurance has nature of low frequency but high severity?  
Marine Insurance

Crop Insurance

Airline Insurance

Life Insurance

Q10 There are two different groups of 100 people. The first group isbetween 30-39  
. years of age. Of these one person dies before the age26 Probability of death in
this case is 1%. The second group is aged60-69 years of these 15 die before the
age of 61. The probability of death in this case is 15%.
This shows that frequency of death is high in younger group

. This shows that frequency of death is low in higher agegroups

This shows that frequency of death is high in higher age

This shows that frequency of death is same in any age groups