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Introduction To Insurance

The document provides an overview of insurance, including its historical development in India, core functions, advantages, and principles governing insurance contracts. It also discusses the role of the IRDAI, the significance of reinsurance, the concept of double insurance, and the importance of insurance in society. Additionally, it outlines methods for handling risks within the insurance framework.

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Baburav Kavitkar
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7 views4 pages

Introduction To Insurance

The document provides an overview of insurance, including its historical development in India, core functions, advantages, and principles governing insurance contracts. It also discusses the role of the IRDAI, the significance of reinsurance, the concept of double insurance, and the importance of insurance in society. Additionally, it outlines methods for handling risks within the insurance framework.

Uploaded by

Baburav Kavitkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: ________________________

Date: ________________________

introduction to insurance

1) What is the historical development of insurance in India?


A) Insurance was introduced during the British colonial period to cover shipping risks
B) The concept of insurance originated in ancient India to protect traders against losses
C) Insurance became popular in India during the Mughal Empire for protecting merchants' goods
D) Insurance was first implemented in India by the East India Company to insure properties

A) Insurance was introduced during the British colonial period to cover shipping risks

2) What are the core functions of insurance?


A) Generating profits for insurance companies
B) Providing financial protection against risks
C) Offering investment opportunities to policyholders
D) Regulating the insurance market

B) Providing financial protection against risks

3) What is the concept and evolution of insurance?


A) Insurance was created in ancient Greece to cover agricultural risks
B) The concept of insurance developed in the 17th century in London for maritime trade
C) Insurance originated in China during the Ming Dynasty to protect against natural disasters
D) The evolution of insurance began in the Middle Ages to safeguard against war risks

B) The concept of insurance developed in the 17th century in London for maritime trade

4) What are the advantages of insurance?


A) Decreasing financial stability
B) Providing peace of mind by reducing uncertainty
C) Encouraging reckless behavior due to coverage
D) Creating additional financial burden on individuals

B) Providing peace of mind by reducing uncertainty

5) What are the principles governing insurance contracts?


A) Adverse selection and moral hazard
B) Utmost good faith and insurable interest
C) Underwriting and premium calculation
D) Policy issuance and claims settlement

B) Utmost good faith and insurable interest

6) What is the role and responsibilities of IRDAI in the Indian insurance industry?
A) Regulating the stock market investments of insurance companies

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B) Ensuring the financial stability of insurance companies
C) Licensing and overseeing insurance companies to protect policyholders' interests
D) Providing training programs for insurance agents and brokers

C) Licensing and overseeing insurance companies to protect policyholders' interests

7) What is the significance of reinsurance in the insurance industry?


A) Reinsurance helps insurance companies avoid paying claims to policyholders
B) Reinsurance allows insurers to transfer a portion of their risks to other companies
C) Reinsurance is only applicable for life insurance policies, not general insurance
D) Reinsurance is primarily used for marketing purposes to attract new policyholders

B) Reinsurance allows insurers to transfer a portion of their risks to other companies

8) What is the concept of double insurance in the insurance industry?


A) When an individual purchases multiple insurance policies to increase coverage for the same
risk
B) The act of insuring an individual twice for the same specific loss
C) A type of insurance that covers two different types of risks under one policy
D) When an insurance company insures itself against potential losses from policyholders' claims

A) When an individual purchases multiple insurance policies to increase coverage for the same
risk

9) What is the importance and necessity of insurance in society?


A) Insurance is a luxury for the wealthy to protect their assets
B) Insurance provides a safety net for individuals and businesses against unexpected losses
C) Insurance is only relevant in developed countries with stable economies
D) Insurance is irrelevant in today's modern world due to advanced risk management tech-
niques

B) Insurance provides a safety net for individuals and businesses against unexpected losses

10) What are the different methods of handling risks in insurance?


A) Ignoring risks and hoping for the best
B) Accepting risks as they come without any mitigation strategies
C) Transferring risks through insurance or other risk transfer mechanisms
D) Eliminating risks entirely by avoiding all potential hazards

C) Transferring risks through insurance or other risk transfer mechanisms

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1) What is the historical development of insurance in India?
A) Insurance was introduced during the British colonial period to cover shipping risks
B) The concept of insurance originated in ancient India to protect traders against losses
C) Insurance became popular in India during the Mughal Empire for protecting merchants' goods
D) Insurance was first implemented in India by the East India Company to insure properties
A

2) What are the core functions of insurance?


A) Generating profits for insurance companies
B) Providing financial protection against risks
C) Offering investment opportunities to policyholders
D) Regulating the insurance market
B

3) What is the concept and evolution of insurance?


A) Insurance was created in ancient Greece to cover agricultural risks
B) The concept of insurance developed in the 17th century in London for maritime trade
C) Insurance originated in China during the Ming Dynasty to protect against natural disasters
D) The evolution of insurance began in the Middle Ages to safeguard against war risks
B

4) What are the advantages of insurance?


A) Decreasing financial stability
B) Providing peace of mind by reducing uncertainty
C) Encouraging reckless behavior due to coverage
D) Creating additional financial burden on individuals
B

5) What are the principles governing insurance contracts?


A) Adverse selection and moral hazard
B) Utmost good faith and insurable interest
C) Underwriting and premium calculation
D) Policy issuance and claims settlement
B

6) What is the role and responsibilities of IRDAI in the Indian insurance industry?
A) Regulating the stock market investments of insurance companies
B) Ensuring the financial stability of insurance companies
C) Licensing and overseeing insurance companies to protect policyholders' interests
D) Providing training programs for insurance agents and brokers
C

7) What is the significance of reinsurance in the insurance industry?


A) Reinsurance helps insurance companies avoid paying claims to policyholders
B) Reinsurance allows insurers to transfer a portion of their risks to other companies
C) Reinsurance is only applicable for life insurance policies, not general insurance
D) Reinsurance is primarily used for marketing purposes to attract new policyholders
B

8) What is the concept of double insurance in the insurance industry?


A) When an individual purchases multiple insurance policies to increase coverage for the same
risk
B) The act of insuring an individual twice for the same specific loss
C) A type of insurance that covers two different types of risks under one policy
D) When an insurance company insures itself against potential losses from policyholders' claims
A

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9) What is the importance and necessity of insurance in society?
A) Insurance is a luxury for the wealthy to protect their assets
B) Insurance provides a safety net for individuals and businesses against unexpected losses
C) Insurance is only relevant in developed countries with stable economies
D) Insurance is irrelevant in today's modern world due to advanced risk management tech-
niques
B

10) What are the different methods of handling risks in insurance?


A) Ignoring risks and hoping for the best
B) Accepting risks as they come without any mitigation strategies
C) Transferring risks through insurance or other risk transfer mechanisms
D) Eliminating risks entirely by avoiding all potential hazards
C

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