Finance Archives - Page 11 of 13 - MCQs | eBooks

The loan allowed to the sole owner of the house which he doesn’t need to pay for house which he doesn’t need to pay for the time that the borrower or the co-owner stay there. instead the loan is repaid when the borrower die or sells the house, or no longer live there as their primary residence. It is known as:

A. Usufructuary Mortgage B. Reverse Mortgage C. English Mortgage D. Equitable Mortgage E. None of the above AnswerOption: B

For foreclosure of a mortgage, the limitation period is 12 years from:

A. Date of loan document B. Date of mortgage C. Date when the money secured by the mortgage becomes due D. Any of the above dates, whichever is earlier E. None of the above AnswerOption: C

Which type of mortgage is not required registration of mortgage with the registrar of assurances?

A. English Mortgage B. Equitable Mortgage C. Reverse Mortgage D. Usufructuary Mortgage AnswerOption: B

The monthly mortgage payment divided by the loan amount is commonly referred to as the

A. Monthly Loan Constant B. Lenders Yield C. Effective Borrowing Cost D. Loan Balance AnswerOption: A

____ covers the construction risk, when the vessel is under construction.

A. Inland marine insurance B. Inland fish insurance C. Marine cargo insurance D. Marine hull insurance AnswerOption: C

____ is a process of assessing risk and deciding who or what the insurance company can insure.

A. Loading B. Claims management C. Underwriting D. Rate making AnswerOption: C

“Defective products” is an example of which loss exposure.

A. Liability loss exposure B. Crime loss exposure C. Human resource loss exposure D. Property loss exposure AnswerOption: A

____ helps lower the cost of insurance as well as increase its availability.

A. Selective Decisions B. Objective Decision C. Deductible Decisions D. All of the above AnswerOption: C

____ are used as a valuable tool/aid to rate making & underwriting.

A. Personnel Management B. Legal Advices C. Engineering Services D. Market Research AnswerOption: C

The ______ principle states that the business and individual should insure potentially serious losses before relatively minor losses.

A. Measurable Loss B. Large Loss C. Catastrophic Hazards D. Determinable Loss AnswerOption: B

Life insurance and general insurance are divided on the basis of:

A. Business point of view B. Risk point of view C. Nature of insurance D. None of above AnswerOption: A

The insurer according to which of the following principle, becomes entitled to all the rights of insured subject matter after payment because he has to pay the actual loss of the property.

A. Doctrine of subrogation B. Subrogation is substitution C. Subrogation uptown the amount of payment D. Subrogation may be applied for payment AnswerOption: B