Insurance Management-1

Assignment – A

Q1: What is risk and how risk is determined in life insurance?

 

Q2: What are the various assumptions underlying the calculation or premium.

 

Q3: How is reserve created and for what is it created?

 

Q4: What is fund and why the fund is invested?

 

Q5: Explain in detail (a) Proposal Form, (b) Medical Examination, (c) Proof of age, and (d) Insurance of female lives.

 

Assignment – B

 

 

Q1: What are the various factors affecting the calculation of premium.

 

Q2: Critically examine the various factors affecting risk. From where this information of risk is obtained?

 

Q3: Give the various solutions of the problems of investment

 

CASE STUDY

1. Calculate the value of an anticipated endowment assurance for a person aged 25 with the following benefits.

(i) A sum of Rs. 100 at the end of 2^nd year.

(ii) A sum of Rs.200 at the end of 3^rd year

(iii) A sum of Rs.300 at the end of 5* year if the life assured is alive at the end of respective years,

(iv) A sum of Rs.600 whenever the dies during the 5 years period Use the data given above with 5 percent rate of interest

2. Calculate on the basis of mortality table given below, net annual premium at 5% rate of interest for a 5 years Term Insurance for Rs. 1,000 effective at the age of 60 years.

		Number
Age	Number Living	Dying
60	1000	20
61	980	22
62	958	25
63	933	33
64	900	40
65	860	45

 

 

 

 

 

 

 

 

 

 

 

 

 

Assignment – C

Q1. Risk is the possibility of an unfortunate_____________

a) Recurrence

b) Occurrence

c) Event

d) None of the above

Q2. Risk is a combination of______________

a) Events

b) Losses

c) Hazards

d) Doubts

Q3. Certainty is a state of being free from____________

a) Touts

b) Doubts

c) Hazards

d) Loss

Q4. Risk gives rise to_______ .

a) Clarity

b) Certainty

c) Uncertainty

d) Doubt

Q5._________ is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.

a) Risk

b) Certainty

c) Uncertainty

d) Doubt

 

Q6. _____is defined as the relative variation of actual loss from expected loss.

a) Subjective risk

b) Risk

c) Objective Risk

d) None of the above

Q7._______ is defined as uncertainty based on a person’s mental condition or state of mind.

a) Subjective risk

b) Risk

c) Objective Risk

d) None of the above

Q8.________ refers to the long run relative frequency of an event based on the assumptions of an infinite number of observations and of no change in the underlying conditions.

a) Objective probability

b) Subjective Probability

c) Probability

d) Chance

Q9.________ is the individual’s personal estimate of the chance of loss

a) Objective probability

b) Subjective Probability

c) Probability

d) Chance

 

Q10. A peril refers to cause of_____ or________ that may cause a loss.

a) Loss, contingency

b) Doubt, contingency

c) Loss, doubt

d) Doubt, hazard

 

Q11. Risk is a condition in which there is a possibility of______ from a ______ that is expected or hoped for.

a) Desired outcome, adverse deviation

b) Adverse deviation, desired outcome

c) No outcome, deviation

d) Exposure, Outcome

 

Q12. Two aspects of probability are________ and___________ .

a) Objective, financial

b) Subjective, financial

c) Objective, subjective

d) None of the above

Q13. Dynamic risks are those resulting from______ in the_________

a) Change, economy

b) Change, financial position

c) Finalization, business

d) None of the above

Q14. A fundamental risk is a risk that affects the entire_____ or large number of____________.

a) Organization, members

b) Country, citizens

c) Business, employees

d) Economy, persons

Q15. Actuarial modeling involves a___________ mechanism.

a) Temporary

b) Permanent

c) Feedback

d) Revert back

Q16. Hazards can be classified as follows:-

i) Physical

ii) Morale

iii)Financial

iv)Monetary

v) Moral

a) i, ii and iii

b) ii, iii and iv

c) iii, iv and v

d) i, ii and v

 

Q17. Certification of risk include:

i) Financial and non financial risk

ii) Objective and subjective risk

iii) Static and dynamic risk

iv) Acceptable and unacceptable risk

v) fundamental and particular risk

vi) Pure and speculative risks

a) All of the above

b) i,iii,iv,v,vi

c) i,ii,iii,iv,v

d) i, ii,iii,iv,vi

 

Q18. Which of the statements are true:

i) Risk is the possibility of an unfortunate occurrence

ii) Risk is a combination of hazards

iii) Risk is predictable

iv) Risk is certainty of loss

v) Risk is possibility of loss

a) All of the above

b) i, ii, and iv

c) ii, iii and v

d) i,ii and v

 

Q19. Pure risks include:

i) Personal risks

ii) Fundamental risks

iii) Property risks

iv) Liability risks

v) Technological risks

a) i, ii and iii

b) i, iii and iv

c) ii, iv and v

d) ii, iii,and v

 

Q20. Personal risks include: i) Risk of premature death ii) Risk of property

iii) Risk of insufficient income during retirement

iv) Risk of poor health

v) Risk of unemployment

a) All of the above

b) i, iii, iv and v

c) ii, iii, iv and v

d) None of the above

 

Q21. Insurance is defined as a co-operative device to____ the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk.

a) Reduce

b) Stop

c) Spread

d) Divide

 

Q22. Risk is uncertainty of a financial loss.

a) True

b) False

 

Q23. Insurance protects ____ property.

a) Personal

b) Public

c) Registered

d) Mortgaged

 

Q24. Insurance eliminates

a) Fear

b) Dependency

c) Protection