Question

What is the secondary burden of risk in insurance?

a.

It consists of losses actually suffered as a result of pure risk events.

b.

It includes the fear and anxiety caused by potential loss events.

c.

It involves the physical and mental strain of managing reserve funds.

d.

It consists of costs and strains due to exposure to loss situations.

Posted under IC38 Life Insurance Agent Exam

Answer: (d).It consists of costs and strains due to exposure to loss situations. Explanation:The secondary burden of risk in insurance consists of costs and strains due to exposure to loss situations.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the secondary burden of risk in insurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is one of the physical and mental strains caused by the secondary burden of risk?

View solution

Q. Why is transferring the risk to an insurer important in managing the secondary burden of risk?

View solution

Q. Which among the following is a secondary burden of risk?

View solution

Q. What is the principle that underlies insurance contracts?

View solution

Q. How do insurance companies reduce risk in financial markets?

View solution

Q. In the context of risk reduction, what does "Diversification" involve?

View solution

Q. How do funds flow in the principle of mutuality?

View solution

Q. What creates a potential corpus of money in insurance contracts?

View solution

Q. What makes insurance unique among financial products?

View solution

Q. What is "risk avoidance" in the context of risk management?

View solution

Q. What is "self-insurance" in risk management?

View solution

Q. Which risk management approach is described as more practical and relevant than risk avoidance?

View solution

Q. What does "risk reduction and control" involve?

View solution

Q. What are measures aimed at reducing the chance of occurrence of loss causing events called?

View solution

Q. What are measures to reduce the degree of loss, in case a loss happens, referred to as?

View solution

Q. What does "Risk reduction" involve?

View solution

Q. Which of the following is an example of risk reduction?

View solution

Q. What does "Risk financing" refer to?

View solution

Q. What is "self-insurance" in risk financing?

View solution

Q. What is the key difference between insurance and assurance?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...