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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-4 section-1

Each section contains 100 MCQs on Insurance .
31
Which was the first Act to regulate life insurance industry in India?
Discuss
Answer & Solution
Answer: Option B
Solution:
Life Insurance Companies Act, 1912 was the first Act to regulate life insurance industry in India. In order to regulate these insurance companies, Life Insurance Companies Act and Provident Fund Act were passed in 1912. Evolution of insurance industry has undergone three phases, Pre-Nationalisation, Nationalisation and Privatisation.
32
Which of the following is an example of Broad Form Insurance?
Discuss
Answer & Solution
Answer: Option B
Solution:
An automobile insurance is an example of Broad Form Insurance. A customer may require glass insurance as the driver is frequently on the highway and obtains a lot of chips in the front window.
33
Which type of insurance usually requires higher premium?
Discuss
Answer & Solution
Answer: Option A
Solution:
Broad Form insurance type of insurance usually requires higher premium. Broad form insurance coverage extends beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance usually requires that a higher premium, and often a deductible, be paid.
34
What is PAC?
Discuss
Answer & Solution
Answer: Option B
Solution:
Pre-Authorized Chequing is an authorization by the insured to allow the Insurance Company to automatically withdrawal their insurance payments from their chequing account.
35
Which of the following form is designed to be used by many different insurers and has exactly the same provisions?
Discuss
Answer & Solution
Answer: Option D
Solution:
Standard Policy Form is an insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing the policy.
36
What is the CRISIL rating for New India Assurance Co Ltd located?
Discuss
Answer & Solution
Answer: Option B
Solution:
AAA/Stable is the CRISIL rating for New India Assurance Co Ltd located. CRISIL has reaffirmed its 'AAA/Stable' rating on The New India Assurance Co Ltd (New India Assurance), indicating that the company has the highest degree of financial strength to honour its policyholders' obligations.
37
Which of the following type of insurance product are available in New India Assurance Co Ltd located?
Discuss
Answer & Solution
Answer: Option D
Solution:
Presently NIACL provides following 5 types of insurance: Personal Insurance, Commercial Insurance, Industrial Insurance, Industrial Insurance, Liability Insurance and Social Insurance
38
The New India Assurance Co. Ltd. was a subsidiary of which of the following company?
Discuss
Answer & Solution
Answer: Option A
Solution:
Previously it was a subsidiary of the General Insurance Corporation of India (GIC). But when GIC became a re-insurance company as per the IRDA Act 1999, its four primary insurance subsidiaries New India Assurance, United India Insurance, Oriental Insurance and National Insurance got autonomy.
39
Where is the head office of Agriculture Insurance Company of India Limited (AIC)?
Discuss
Answer & Solution
Answer: Option B
Solution:
The head office of Agriculture Insurance Company of India Limited (AIC) is in New Delhi.
40
IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of "B" in IBAI?
Discuss
Answer & Solution
Answer: Option C
Solution:
Insurance Brokers Association of India (I.B.A.I.) was incorporated as a Company under Section 25 of the Companies Act, 1956 vide Certificate of Incorporation No. U 67120 MH 2001 NPL 132860 dated 25th July 2001. B stands for Brokers.