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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-9

Each section contains 100 MCQs on Insurance .
91
What is the maximum %age of surrender value that can be granted as loan?
Discuss
Answer & Solution
Answer: Option D
Solution:
The maximum 90 percent of surrender value that can be granted as loan.
92
In so far policy loans are concerned, which one of the following is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
Both the statements are correct.
The policy has to be assigned in favour of the insurer and such an assignment will not cancel the nomination already made.
93
If both policy loan and premiums are not paid, the outstanding loan/interest may exceed the policy’s cash value. What would the insurer do in such an eventuality?
Discuss
Answer & Solution
Answer: Option D
Solution:
Foreclosure is the legal process by which a lender takes control of a property, evicts the homeowner and sells the home after a homeowner is unable to make full principal and interest payments on his or her mortgage, as stipulated in the mortgage contract.
94
In respect of nomination, which one of the following is incorrect?
Discuss
Answer & Solution
Answer: Option C
Solution:
Nominee doesnot have right to whole/part of the claim.
95
Where more than one nominee is nominated –
Discuss
Answer & Solution
Answer: Option B
Solution:
Where the death claim monies is payable jointly more than one nominee is nominated.
96
Assignment involves transfer of _________ under the policy to another person/entity.
Discuss
Answer & Solution
Answer: Option D
Solution:
Assignment involves transfer of Rights, Title, Ownership under the policy to another person/entity.
97
The person who transfer rights is called _________ and the person who receives the right is called _________
Discuss
Answer & Solution
Answer: Option C
Solution:
The person who transfer rights is called Assignor and the person who receives the right is called Assignee.
98
What is common between nomination and assignment?
Discuss
Answer & Solution
Answer: Option B
Solution:
Both are done as per Insurance Act, 1938. The appointment of an individual by the assured to receive the amount secured by the policy, upon the demise of the assured is known as a nomination. On the other hand, assignment refers to cede the right, ownership, and interest in the policy to another person.
99
In respect of Assignment which of the following is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
In respect of Assignment the following are correct are Assignee becomes owner of the policy and Assignee cannot have better rights than assignor.
100
Which of the following is correct?
Discuss
Answer & Solution
Answer: Option D
Solution:
All the statements are correct.
Under absolute assignment, the assignee will have all rights, The assignee can deal with the policy in any manner and Under conditional assignment the policy shall revert back to the assignor on the happening of an event.