Page 313 - IC38 GENERAL INSURANCE

IV. Dynamic risk

Question 4

_____________ is not an example of an asset.

I. House
II. Sunlight
III. Plant and machinery
IV. Motor car

Question 5

______________ is not an example of risk.

I. Damage to car due to accident
II. Damage of cargo due to rain water
III. Damage to car tyre due to wear and tear
IV. Damage to property due to fire

Question 6

Earthquake is an example of:

I. Catastrophic risk
II. Dynamic risk
III. Marginal risk
IV. Speculative risk

Question 7

Select the most appropriate logical equivalence for the statement.

Statement: Insurance cannot protect an asset from loss or damage.

I. True
II. False
III. Partially true
IV. Not necessarily true

Question 8

__________________ means transfer of all rights and remedies, with respect to
the subject matter of insurance, from insured to insurer.

I. Contribution
II. Subrogation
III. Legal hazard
IV. Risk pooling

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