BBA/6/EC/25(D) Student’s Copy

Professional Course Examination, May 2022

( 6th Semester )

BACHELOR OF BUSINESS ADMINISTRATION

( Insurance Management )

Full Marks : 75

Time : 3 hours

The figures in the margin indicate full marks for the questions

( PART : A—OBJECTIVE )
( Marks : 35 )

SECTION—I
( Marks : 15 )

Tick (3) the correct answer in the brackets provided : 1½×10=15

1. Insurance business is based on

(a) Parkinson’s law ( )
(b) Newton’s law ( )
(c) the theory of probability and law of large number ( )
(d) Boyle’s law ( )

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 2. The principle of indemnity is not applicable to life insurance because
(a) it does not meet the requirements of life insurance contract ( )
(b) it is applicable to general insurance contract ( )
(c) the monetary value of the person cannot be measured
accurately ( )
(d) None of the above ( )

3. Which of the following methods reduces the chances of loss to zero?

(a) Risk avoidance ( ) (b) Risk transferring ( )
(c) Risk retention ( ) (d) Risk reduction ( )

4. An insurance agent represents the

(a) insured ( ) (b) insurer ( )
(c) government ( ) (d) adjustment bureau ( )

5. As per the doctrine of insurable interest, insurable interest should be

present in the case of life insurance
(a) at the time of claim settlement ( )
(b) at the time of revival only ( )
(c) only at the inception of the policy ( )
(d) at inception and at the time of revival ( )

6. Term insurance provides which of the following benefits?

(a) Death benefit if the person dies ( )
(b) Death and survival benefits ( )
(c) Periodic payments at predictable intervals ( )
(d) Death benefits with bonus ( )

7. When was the Insurance Regulatory Development Authority constituted?

(a) 1971 ( ) (b) 1999 ( )
(c) 2001 ( ) (d) 2006 ( )

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 8. The written insurance contract that may include clauses, riders and
endorsement is called
(a) installment ( )
(b) premium ( )
(c) policy ( )
(d) assets ( )

9. A nomination can be made only in favour of

(a) a bank ( )
(b) spouse and children with guardian ( )
(c) parents, spouse and children ( )
(d) any individual ( )

10. Which of the following terms matches closest with ‘foreclosure’?

(a) Nominee ( )
(b) Surrender value ( )
(c) Bonus ( )
(d) Maturity claim ( )

SECTION—II
( Marks : 20 )

Write short notes on any four of the following : 5×4=20

11. Comparison and contrasting the product characteristic and objectives of

term and endowment forms of life insurance

12. Objective of risk management

13. Functions of claim department

14. Guiding principles of underwriting

15. Features of group insurance

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16. Principle of insurable interest

17. Cancellation of agent license

18. Distribution channels of insurance in India

( PART : B—DESCRIPTIVE )
( Marks : 40 )

Answer the following questions : 10×4=40

19. Discuss the distinguishing characteristics of an insurance contract.

OR
Explain the various fundamental principles of life insurance.

20. Is the insurer’s decision to deny compensation on the ground of

non-disclosure of material facts justified? If so, explain how.
OR
Describe the various compensation practices used for management and
intermediaries involved in the marketing of life insurance.

21. Discuss in detail different types of insurance organization.

OR
“The effectiveness of claims management is dependent on two elements
such as well-defined structure of claims department and well-defined
working of the department.” Discuss.

22. Discuss the necessity of conducting an actuarial valuation for a life

insurance company.
OR
Discuss the features of fire insurance. Explain the principles and prospect
of fire insurance.

HHH

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