Question paper for Risk and insurance management

A. Which of the following statement are true or false?

1. The insurance is an old institution of transactional trade.
2. Insurance is gambling.
3. Marine insurance is an oldest form of insurance.
4. Insurance is a cooperative device to share the burden of risk.
5. The insurance company is bound to make the payment to the
insured.

A.
1. True
2. False
3. True
4. True
5. True

A. Which of the following statements are true and false?

1. The ‘offer’ in case of insurance called ‘proposal’.
2. The contract would complete on payment of the premium with in the
prescribed period.
3. Insurer can compel the insured to pay the premium subsequent the
first premium.
4. The insured can enter into the contract provided that he is not minor.
5. The insurer is not legally bound to send the notice of premium.

A.
1. True
2. True
3. False
4. True
5. True

A. Which of the following statements are true and false:

1. A contract of Marine Insurance is a contract based upon the utmost
good faith.
2. It is not an obligation to the parties to insurance contract to make a
full and truedisclosure of material fact.
3. United India Insurance Co. Ltd. V. M.K.J. Corporation case in related
to ut most good faith.
4. LIC of India v. Channasbasamma is related to burden of proof.
5. Virmani Refrigeration & Cold Storage Pvt. Ltd. V. New India
Assurance Co.Ltd. is related to insurable interest.
A.
1. True
2. False
3. True
4. True
5. True
Fill in the blanks:

1. The fire insurance got momentum in England after the great fire
in……… when the fire loses were tremendous.
2. The Life Insurance Corporation was formed in …………….
3. The first general insurance company established by an Indian
was ……………………..
4. The IRDA Act also carried out a series of amendments to the
…………………
5. The Primary purpose of insurance is to provide protection
against………..

Answers

1. 1666
2. September, 1956
3. Indian Mercantile Insurance Co. Ltd.
4. Insurance Act, 1938
5. Future Risk

B. Fill in the blanks:

1. The valid insurance contract, like any other contract according
to…………..of the Indian Contract Act, 1872.
2. The insurer’s offer to insure the proposer is to be …………………………
on the risk not materially changing to prior to acceptance.
3. ………………………..of the Indian Contract Act, 1872 lays down that
consent is said to be free.
4. Any ambiguity in the policy will be construed ………………..the insurer.
5. The insured has right to obtain a loan on the security of the policy
within its ……………………………..

Answers

1. Section 10
2. deemed conditional
3. Section 14
4. Against
5. Surrender value

B. Fill in the blanks:

1. Indemnity is the …………………. Principle of insurance.
 2. Literally, indemnity means “………………………………….”.
3. English case law Pawsey& Co. v. Scottish Union and National
Insurance Co .Ltd. is related to principle of “……………………..”.
4. Subrogation is the transfer of ..……………………………. Of the insured
to the insurer who has indemnified the insured in respect of the loss.
5. Contribution is the right of an ……………….

1. Controlling
2. Make good the loss
3. Proximate Cause
4. Rights and remedies
5. Insurer
Terminal Questions

Q.1. Discuss the functions of insurance.

Q.2. Discuss the limitations of insurance.
Q.3. Define insurance and describe its main characteristics.
Q.4. Discuss the importance of insurance.
Q.5. Discuss the history of insurance.
Q.6. What is important principle of Insurance?
Q.7. Discuss in detail offer and acceptance.
Q.8. Who is competent or not competent to make contract.
Q.9. Explain the procedure to settle the claim?
Q.10. Explain in detail the importance of conditions of policy.
Q.11. Discuss in detail the principle of Utmost Good Faith.
Q.12. Discuss in detail principle of Insurable Interest.
Q.13. Discuss in detail principle of Causa- Proxima.
Q.14. Discuss in detail principle of Indemnity.
Q.15. Write short notes on any two of the following:
a. Re-Insurance b. Double Insurance c. Assignment