Question

In what situation would insurance be most required?

a.

When the probability of an event is high, and the premium is low

b.

When the loss impact is very high, and the premium is very high

c.

When the loss impact is very high, but the probability (and premium) is very low

d.

When there is no possibility of a loss occurring

Posted under IC38 Life Insurance Agent Exam

Answer: (c).When the loss impact is very high, but the probability (and premium) is very low Explanation:Insurance is most required when the loss impact is very high, but the probability (and premium) is very low.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. In what situation would insurance be most required?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the importance of not risking more than one can afford to lose?

View solution

Q. When is it best to insure assets?

View solution

Q. Which among the following scenarios needs insurance?

View solution

Q. Who are the major players in the insurance industry?

View solution

Q. What is the role of the Insurance Regulator in the insurance market?

View solution

Q. Who are the intermediaries in the insurance industry?

View solution

Q. What is the role of Third Party Administrators in the insurance industry?

View solution

Q. What responsibility do intermediaries, such as Agents, have towards the customer according to IRDAI regulations?

View solution

Q. According to IRDAI regulations, what must be done if the proposal and related documents are not filled by the customer?

View solution

Q. What is the obligation of the insurer when the customer pays the premium?

View solution

Q. What is the foundation principle of insurance?

View solution

Q. How do insurance companies collect and use premiums?

View solution

Q. What role does insurance play in terms of investment and entrepreneurship?

View solution

Q. Why do many banks and financial institutions insist on property insurance?

View solution

Q. What do general insurers do before accepting large complicated risks?

View solution

Q. How does insurance contribute to a country's economy?

View solution

Q. What is the role of social security schemes in relation to insurance?

View solution

Q. Which act provides for the payment of expenses related to sickness, disablement, maternity, and death for industrial employees and their families in India?

View solution

Q. How do insurers contribute to social security in India?

View solution

Q. Which of the following is a government-sponsored social security scheme in India?

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!

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Human Anatomy and Physiology

Embark on a journey through the human body with our Human Anatomy and Physiology...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...