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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-2 section-1

Each section contains 100 MCQs on Insurance .
11
Limit of FDI in Insurance sector:
Discuss
Answer & Solution
Answer: Option A
Solution:
Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49% in an attempt to attract more overseas insurance players to India.
12
Largest Life Insurance Company in India is:
Discuss
Answer & Solution
Answer: Option B
Solution:
Largest Life Insurance Company in India is Life Insurance Corporation of India (LIC). LIC is Indian state-owned insurance group and investment company.
13
Which was an oldest insurance company, found in 1906:
Discuss
Answer & Solution
Answer: Option B
Solution:
National Insurance Company Limited (NICL) is the oldest non-life general insurance company of India. It was established on 5th December 1906 at Kolkata.
14
Life Insurance Corporation was found on:
Discuss
Answer & Solution
Answer: Option D
Solution:
Life Insurance Corporation was found on 1 September, 1956. Life Insurance Corporation of India commenced its functioning as a corporate body from September 1, 1956. Its working is governed by the LIC Act.
15
In which among the following year National Insurance Company Limited (NICL) was incorporated?
Discuss
Answer & Solution
Answer: Option A
Solution:
In 1906, National Insurance Company Limited (NICL) was incorporated. National Insurance Company was set up largely on the nationalism principles of Swaraj (self-government). NICL was nationalized after 66 years in the year 1972.
16
Headquarter of LIC is situated at:
Discuss
Answer & Solution
Answer: Option C
Solution:
Headquarter of LIC is situated at Mumbai. Life Insurance Corporation is an Indian owned largest insurance company started in the year 1956. Its head quarters are located in Mumbai and had total funds of about 1433103.14 crore Rupees and about 367.82 lakh policies sold every year.
17
Oldest (1818) life insurance company is:
Discuss
Answer & Solution
Answer: Option C
Solution:
The Oriental Life Insurance Company was started by Europeans in Calcutta in 1818 to cater to the growing numbers of Britishers in India.
18
Insurance is listed in the Constitution of India in _________scheduled as Union List subject:
Discuss
Answer & Solution
Answer: Option C
Solution:
Insurance is listed in the Constitution of India in Seventh scheduled as Union List subject.
19
Insurance is legislated by:
Discuss
Answer & Solution
Answer: Option C
Solution:
Insurance is legislated by Central Government. Insurance in India covers both, public and private sector organisations. It is listed in the Seventh Schedule as a Union List subject in the Constitution of India. It can only be legislated by the Central government.
20
Which of the following is not the principle of insurance:
Discuss
Answer & Solution
Answer: Option C
Solution:
Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.