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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-8

Each section contains 100 MCQs on Insurance .
91
A pension scheme in which the employer manages fund through a trust and pays pension thro purchase of an annuity from a life insurance company is called
Discuss
Answer & Solution
Answer: Option A
Solution:
Uninsured plan is usually funded pension or retirement plan not providing for the guarantee of benefits by an insurance company.
92
A pension scheme in which the funds are managed by the insurance company is called –
Discuss
Answer & Solution
Answer: Option B
Solution:
Pension insurance contract is an insurance contract that specifies pension plan contributions to an insurance undertaking in exchange for which the pension plan benefits will be paid when the members reach a specified retirement age or on earlier exit of members from the plan.
93
Which type of Occupational pension has fallen into trouble in recent times:
Discuss
Answer & Solution
Answer: Option A
Solution:
Defined Benefit type of occupational pension has fallen into trouble in recent times.
94
Employers throughout the world has migrated from _________ _________ to _________ in recent times.
Discuss
Answer & Solution
Answer: Option B
Solution:
Employers throughout the world has migrated from defined benefit to defined contribution in recent times.
95
Defined Contribution scheme is also known as –
Discuss
Answer & Solution
Answer: Option D
Solution:
Defined contribution (DC) schemes are occupational pension schemes where your own contributions and your employer's contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement.
96
Which one of the following is correct?
Discuss
Answer & Solution
Answer: Option D
Solution:
Both the statements are incorrect.
Under Defined Benefit scheme, pension paid was not linked to investment performance of fund and Under Defined Contribution scheme, pension paid was linked to investment performance of the fund.
97
Who markets personal pension products?
Discuss
Answer & Solution
Answer: Option D
Solution:
Life Insurers markets personal pension products. Personal pensions (also known as “private pensions”) are long-term savings products that individuals contribute to on a voluntary basis, complementing state and workplace pensions. They have a role to play in linking long-term savers with long-term investment opportunities.
98
In a Personal pension scheme, who pays Pension to whom?
Discuss
Answer & Solution
Answer: Option A
Solution:
Personal pensions are a type of defined contribution pension scheme.They are individual contracts between you and the pension provider and are set up by you, the member. The pension provider is often an insurance company, although there are also a number of independent providers.
99
Which one of the following is correct?
Discuss
Answer & Solution
Answer: Option B
Solution:
Amount of annuity payable is inversely proportional to Length of annuity. The growth of the annuity’s value and/or the benefits paid may be fixed at a dollar amount or by an interest rate, or they may grow by a specified formula. The growth of the annuity’s value and/or the benefits paid does not depend directly or entirely on the performance of the investments the insurance company makes to support the annuity.
100
The facility to withdraw 1/3rd of the accumulated amount at the time of retirement is called
Discuss
Answer & Solution
Answer: Option B
Solution:
The facility to withdraw 1/3rd of the accumulated amount at the time of retirement is called Commutation.