Practice Test |
  • Insurance companies collect premium against ______.

    life policies
    all the options are correct
    non-living policies
    non-life policies
  • The term inflation indicates the ______ in the price level of goods or services.?

  • Which one of them is the advantage of insurance?

    It intentionally tries to compensate as less as possible to the sufferer with the aim of maximizing profit rather than maximizing well-being of the insured.
    It provides economic protection to the insured.
    It consumes more time to provide financial compensation because lengthy legal formalities.
    It does not provide enough financial facilities like the bank does. So, people prefer to save in the bank rather than in insurance.
  • Which one of them is the disadvantage of insurance?

    It provides financial compensation in case of loss or damage to the properties of the business.
    It is a means of encouraging saving.
    It protects against the uncertainties providing adequate financial support.
    Insurance company shows bias to the insured as it does not compensate all types of losses.
  • Insurance is a means of encouraging ______.

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