Q. Why are losses arising out of normal wear and tear not covered in insurance?

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Q. When does insurance come into play in the event of a peril?

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Q. What is the term used to describe losses that result in total loss or bankruptcy?

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Q. What is the primary factor that determines the extent of damage likely to be suffered in a risk event or situation?

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Q. Which of the following would be considered a critical loss?

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Q. What is the defining characteristic of catastrophic losses in insurance?

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Q. Which of the following events would be categorized as a catastrophic loss?

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Q. What is the defining characteristic of marginal/insignificant losses in insurance?

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Q. What is a hazard in the context of insurance?

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Q. What is the primary purpose of assessing hazards in insurance underwriting?

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Q. What is a physical hazard in the context of insurance?

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Q. Which of the following is an example of a moral hazard?

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Q. What is a legal hazard in insurance?

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Q. What mathematical principle makes insurance possible?

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Q. How does the principle of risk pooling work in insurance?

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Q. What principle states that the larger the size of the pool of risks, the actual average of losses would be closer to the estimated or expected average loss?

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Q. Why can insurers be more certain about their predictions regarding losses?

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Q. What is the minimum solvency ratio mandated by IRDAI in India for insurance companies?

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Q. In the context of insurance, why is it important for insurers to have a large number of insured individuals?

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Q. What happens if the pools of risks and premium pools created by insurance companies are not sufficient to meet their liabilities towards paying claims?

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