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  • Question
  • All Insurance is based on a principle called


  • Options
  • A. investment premiums
  • B. division of risk
  • C. cash value coverage.
  • D. premium earnings

  • Correct Answer
  • division of risk 

    Explanation

    Any type of insurance, be it home, auto, life, health, etc. are based on a principle of division of risk.

     

    Division of Risk :: This is based on how much risk the insurer estimates the insured's coverage to be. The riskier the opportunity (bad health, area the home is in) the higher the premium costs.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    More questions

    • 1. Plants synthesis protein from

    • Options
    • A. starch
    • B. sugar
    • C. amino acids
    • D. fatty acids
    • Discuss
    • 2. The year 1985 was declared as the International Year of

    • Options
    • A. Blind
    • B. Youth
    • C. Children
    • D. GandhiWomen
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    • 3. The 'Char Minar' is in

    • Options
    • A. Ahmedabad
    • B. Hyderabad
    • C. Delhi
    • D. Sikri
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    • 4. Detergents used for cleaning clothes and utensils contain?

    • Options
    • A. bicarbonates
    • B. bismuthates
    • C. sulphonates
    • D. nitrates
    • Discuss
    • 5. What is the term to ask the computer to put information in order numerically or alphabetically?

    • Options
    • A. Crop
    • B. Report
    • C. Record
    • D. Sort
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    • 6. Where is the National Institute of Virology situated?

    • Options
    • A. Pune
    • B. Delhi
    • C. Kolkata
    • D. Madras
    • Discuss
    • 7. Jamini Roy was a famous?

    • Options
    • A. Producer
    • B. Painter
    • C. Dancer
    • D. Actor
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    • 8. The 'Agha Khan Cup' is associated with which game?

    • Options
    • A. Badminton
    • B. Hockey
    • C. Football
    • D. Cricket
    • Discuss
    • 9. What is the Websites code for the country Spain?

    • Options
    • A. SI
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    • C. ES
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    • 10. The World Environment Day is celebrated on

    • Options
    • A. April 7
    • B. June 5
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