Question

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

a.

It ensures that all assets are insured

b.

It prevents the need for insurance

c.

It helps maintain a reasonable relationship between risk and value

d.

It ensures that large oil refineries are always insured

Posted under IC38 Life Insurance Agent Exam

Answer: (c).It helps maintain a reasonable relationship between risk and value Explanation:Not risking more than one can afford to lose helps maintain a reasonable relationship between the cost of transferring risk and its value.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What is the ultimate objective of insurance covers offered on a commercial basis by the insurance industry?

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!

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

Automotive Engine Design

Embark on a thrilling exploration of Automotive Engine Design, where the intricacies...

IC90 Human Resource Management

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

Environment Management

Master the art of Environment Management with our specialized category. Explore...

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...