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Insurance MCQ Questions and Solutions with Explanations | Commerce

Insurance MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Insurance MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-1

Each section contains 100 MCQs on Insurance .
91
_________ is the maximum amount an insurance company will pay if an insured asset is deemed a total loss.
Discuss
Answer & Solution
Answer: Option A
Solution:
Insurance value is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. It is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. The asset's insured value can either be its replacement cost or its market value, depending on the insurance policy.
92
Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income?
Discuss
Answer & Solution
Answer: Option D
Solution:
Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for the equity-linked savings scheme, the national savings certificates and the endowment insurance policy investments are allowed to be deducted from his taxable income.
93
An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to
Discuss
Answer & Solution
Answer: Option B
Solution:
An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to decrease.
94
The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to
Discuss
Answer & Solution
Answer: Option C
Solution:
The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to Increase cover when a key life event occurs. A guaranteed insurability rider, also called a GI rider, is a life insurance rider which allows the owner of a life insurance policy to buy additional life insurance with no underwriting. A rider is an additional benefit to a life insurance policy beyond the death benefit.
95
The changes in healthcare costs over recent years has had what general impact on healthcare insurance?
Discuss
Answer & Solution
Answer: Option C
Solution:
The changes in healthcare costs over recent years has had a rise in the need for cover on healthcare insurance.
96
The general need for a pension policy results from the existence of what key problem?
Discuss
Answer & Solution
Answer: Option A
Solution:
The general need for a pension policy results from the existence of anticipated fall in income. Anticipated Income is the amount of income the applicant can reasonably be expected to receive during the calendar year.
97
Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income?
Discuss
Answer & Solution
Answer: Option D
Solution:
Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for Yash, his wife and both his children will qualify as deductible from Yash’s taxable income.
98
The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Which main life stage is the most likely to fall into?
Discuss
Answer & Solution
Answer: Option D
Solution:
The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Retirement is the most likely to fall into.
99
Apart from the salary level, what another key feature of Alok’s job is likely to have a major impact on the level of his pension, life insurance, and health insurance needs?
Discuss
Answer & Solution
Answer: Option C
Solution:
Apart from the salary level, Whether the job is in the public or private sector key feature of Alok’s job is likely to have a major impact on the level of his pension, life insurance, and health insurance needs.
100
Insurance works on the principle of
Discuss
Answer & Solution
Answer: Option D
Solution:
Insurance works on the principle of Trust, Sharing and Randomness.