Risk, underwriting & claims
1. Define underwriting and describe with example the significance of underwriting in insurance.
2. Discuss the function of an insurance underwriter.
3. What is the importance of pre-insurance inspection of a proposed risk?
4. Discuss the relevance of ‘moral hazards’ & ‘physical hazards ‘in considering a personal accident insurance proposal.
5. Discuss the procedure for settlement of a fire claim.
6. Enumerate various document required for settlement of an accidental death claim,
7. Distinguish between ‘pure risk &trade risks’
8. Write short note on any three of the following.
a. ‘Standard lives’& ‘substandard lives’.
Definition of 'Substandard Insurance'
b. Depreciation
c.Loading of premium
d. No-claim bonus
e. Excess clause in motor insurance.
CASE STUDY
(A) Mr. Wilson has a car which is 12 years old. The Market value of which is Rs. 1.00 Lacs. However, Mr. Wilson wishes to insure this car for Rs. 5 lacs due to his sentiments attached to it.
(B) Mr. Mathew purchased a ‘Money Back Policy’ from M/s. Supreme Life Insurance’ for a Sum Assured of Rs. 2.00 Lacs for 15 years. The survival Benefit after 5 years accrues @ 25% of Sum Insured. A bonus was accumulated to the maturity.
Questions-
1. Discuss as a Motor Insurance Underwriter, how you would react to this?
2. Calculate the sum payable at the maturity of the Policy.
1. ‘Poor Risk’ means having--
a) Low degree of exposure.
b) Medium degree of exposure.
c) High degree of exposure.
d) Non-existence of risk
2. Insurance Covers --
a) Dynamic Risks
b) Pure Risks
c) Static Risks
d) Business Risks.
3. ‘Excess Clause’ is being imposed to --
a) Restrict big claims.
b) Restrict small claims.
c) Get higher premium.
d) Providing No-Claim Bonus.
4. Risk Manager is a person who--
a) Looks after Insurance Company’s underwriting department.
b) Looks after the ‘Risk Profile’ of an Industrial/Commercial unit.
c) Inspects the Risks proposed for seeking insurance cover.
d) Issues Insurance Policy.
5. Insurance Premium is --
a) A claim amount being promised to be paid by the Insurer.
b) The consideration being paid by the proposer to Insurer.
c) The extra benefits the Insured can get by assigning the policy to another person.
6. Pure Risk means --
a) Gambling.
b) Business Risk
c) Risk where possibility of both Profit and Loss is there.
d) Unexpected event which, if occurs, shall bring losses only and no profit.
7. Risk Management means --
a) Purchasing Insurance covers.
b) Selling Insurance Policies.
c) Assessing the Risk Profile and choosing suitable Risk handling techniques.
d) All of above
8. The best technique to handle Risks is--
a) Avoiding the Risk.
b) Transfer of Risk.
c) Reducing the Risk.
d) May be all of above.
9. Proposal Form is submitted by --
a) Insurance Agent.
b) Insurance Broker
c) The Proposer.
d) The Insurance Company.
10. ‘Hazards’ means conditions which--
a) Reduce the degree of Risks.
b) Enhance the degree of Risks.
c) May reduce or enhance the degree of risks.
d) None of above.
11. ‘Sub-Standard Life’ from Life Insurance point of view means --
a) A person having lower Income.
b) A person lives in slums.
c) A person having ill health.
d) A person having sound health.
12. An Insurance Underwriter should be--
a) An Engineer.
b) A Chartered Accountant.
c) A young and enterprising person.
d) A person having good exposure in Risk Analysis and Risk evaluation.
13. Physical Hazard in Fire Insurance is basically concerned with --
a) Financial soundness of the proposer.
b) Physical health of the proposer.
c) Physical features of the Industrial unit proposed for insurance.
d) Smoking habit of the proposer.
14. Proposal Form is --
a) Evidence of Insurance Contract.
b) A document containing information about the proposer and the risks proposed to be insured
c) Insurance Policy.
d) Premium Receipt.
15. ‘Principle of Indemnity’ is strictly applicable in--
a) Insurance.
b) Valued Policies Life Insurance.
c) Personal Accident Insurance.
d) Property.
16. ‘Self Insurance’ means--
a) Insuring one’s own life.
b) Insuring one’s own property.
c) Retaining the part/whole of the risk.
d) Self-sustained insurance rate.
17. Insurance Surveyor is--
a) Technically qualified person.
b) Insurance Companies representative.
c) An independent person only licensed by IRDA.
d) Insurance Broker’s representative
18. For Settlement of ‘Theft’ claims--
a) Lodging FIR by the Insured is necessary
b) Conducting Investigation by the Policy is necessary.
c) Conducting Investigation by Insurer’s Investigator is desirable.
d) All of the above.
19. In India presently insurance business is controlled by --
a) Insurance Companies.
b) GIC
c) LIC
d) IRDA
20. Generally Insurance Surveyors are deputed by --
a) Insured.
b) Insurance Brokers.
c) Insurers
d) Insurance Agents
21. In India presently insurance business is conducted by --
a) Public Sector Companies Only.
b) Private Sector Companies Only.
c) Foreign Insurance Companies Only.
d) Public Sector & Private Sector Companies.
22. No Claim Discount is granted when--
a) There had been a number of claims in previous insurance policies :
b) The Insured will not take any claim in the next policy.
c) Either no claim or low amounts of claims were taken in previous policies.
d) None of above.
23. Breach of Utmost Good Faith by an Insured--
a) Shall lead to repudiation of claims
b) Will not lead to repudiation of claims.
c) May lead to repudiation of claims.
d) All of above.
24. Insurance Underwriter is a person who--
a) Sells the Insurance Policies.
b) Inspects the risks before accepting the proposal.
c) Decides whether to accept the Insurance proposal or not.
d) Issue the Insurance Policies
25. In Motor Insurance (own damage) policy, upon taking partial loss claim--
a) Policy is cancelled.
b) Sum Insured is reduced.
c) Sum Insured is not affected.
d) Premium is charged on the claimed amount for unexpired policy period.
26. Insurance Claim is settled by --
a) Insurance Agent.
b) Insurance Surveyor.
c) Insurance Company.
d) All of above
27. Fire Insurance Premium Rates at present are determined by --
a) GIC
b) LIC
c) IRDA
d) Individual Insurance Companies
28. ‘Insurable Interest’ means--
a) Interest accrued on Insurance Policies.
b) Financial Interest in the subject matter proposed for Insurance.
c) Interest imposed on delayed payment of Insurance premium.
d) All of above.
29. Excess is an amount --
a) Which is being borne by the Insured?
b) When claim amount exceeds the same then whole claim amount is being paid.
c) Being paid in excess of claimed amount.
d) All of above.
30‘Nomination’ in Insurance Policy means--
a) Nominating a person to pay Insurance premium.
b) Nominating a person to pursue claims.
c) Nominating a person to receive claim after Assured’s Death.
d) Nominating a person to receive claim before Assured’s Death
31. From Insurance point of view LCM means--
a) Low Cost Machines
b) Lowest Common Men.
c) Loss Control Measures.
d) All of above
32. Insurance claim is being paid--
a) Before occurrence of loss.
b) Before conducting the survey.
c) After conducting the survey.
d) None of above.
33. ‘Under Insurance’ clause is used to--
a) Pay full claim
b) Pay no claim.
c) Pay proportionate claim.
d) None of above
34. Claim Discharge Voucher is submitted --
a) At the time of lodging the claim.
b) Before settlement of the claim.
c) At the time of receipt of full and final claim amount.
d) After receipt of full and final claim amount.
35. For Death Claim under life insurance policy --
a) Death Certificate is not required.
b) Death Certificate is necessary.
c) PMR is necessary.
d) FIR is necessary.
36. ‘Principle of Contribution’ means--
a) Insured contributes in the claim.
b) All concerned Insurers contribute in the claim
c) All Insurance Agents contribute in the claim.
d) All Brokers contribute in the claim.
37. In Fire Insurance upon taking partial loss claim--
a) Policy is cancelled.
b) Sum Insured is reduced.
c) Sum Insured is not affected.
d) Premium is charged on the claim amount for unexpired policy Period.
38. Survey Fee for assessing the loss is borne by --
a) The Insured.
b) The Insurance Agent.
c) The Insurance Broker.
d) The Insurance Company.
39. The ‘Claim Form’ is--
a) Not required by the Insurer.
b) Necessarily required by the Insurer.
c) Submitted by the Insurer’s Agent.
d) None of the above.
40. ‘Salvage’ is--
a) The goods which have been destroyed completely.
b) The goods which not at all affected.
c) The goods which were affected but still could be utilized for some purpose.
d) All of above.
Dear Student,
solved assignment which is always available with us. We ensure you that the answer quality would be the best and you will get up to 90% to 100% marks in the assignments purchased from us. We have an expert on every subject working with us. The subject matter experts are highly qualified and deliver their best for you over and over again.
Please have a look at the price list mentioned below and send us a reply on this e-mail to let us know which assignment you want from us.
Type A- Rs. per subject – This assignment is ready to use assignment for every student. (The content of this assignment is the same for every student. You may risk getting your marks deducted by the university due to plagiarism.)
Type B- Rs. per subject - This assignment is personalized and customized just for you. The answers of this assignment would not be shared with any other student. The content of this assignment would be unique and we will delete it from our database after sending it to you exclusively. (This assignment would have 0% plagiarism)
Type C- Rs. per subject – This assignment is done by our staff members on your behalf. We will do it online by using your e-mail id and password. The answers we provide would be unique and will not be shared with any other student. (This assignment would also have 0% plagiarism)
Please note that you have to pay us in advance. All payment should be made in INR. As soon as we receive your payment, we will send your Type A assignment within 10 minutes only. If you have opted for Type B, we will send the assignment within 5 hours of receiving your payment. If you have opted for Type C, we will send your assignment within 24 hours of receiving the payment. Type B and Type C assignment submission takes more time because we customize each and every word of the assignment just for you. So we request you to be patient.
Our process
1. Email or call us for which of assignment you need A,B,C
2. we will reply you price list of assignment
3. After you have made the payment please email us your payment details with Assignment Name and Type Preference at solvezone@gmail.com. We will send your assignment asap.
Pay Online
Now you can also make the payment online by the below mentioned link. We accept payments through Credit Card, Debit Card and Net Banking too.
Pay Offline
You can also pay us via NEFT / RTGS by visiting the nearest branch of your bank.
You can also deposit Cash by visiting the nearest branch of ICICI Bank.
Year: 2015