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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-4

Each section contains 100 MCQs on Insurance .
31
IRDA has prescribed the design and content of a proposal form through
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
32
A policy taken with critical illness rider benefit is being assigned. Which type of assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim?
Discuss
Answer & Solution
Answer: Option B
Solution:
A policy taken with critical illness rider benefit is being assigned. Conditional assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim.
33
The measures to reduce chances of occurrence of risk are known as _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The measures to reduce chances of occurrence of risk are known as Loss prevention. The risk removed through risk pooling is known as insurance. Loss prevention measures trim down the chance of incidence of risk. The Insurance provides peace of brains and helps the person to plan his or her business efficiently.
34
By transferring risk to insurer, it becomes possible _________.
Discuss
Answer & Solution
Answer: Option D
Solution:
By transferring risk to insurer, it becomes possible to enjoy peace of mind and plan one’s business more effectively.
35
Origins of modern insurance business can be traced to _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Origins of modern insurance business can be traced to Lloyd's. Insurance pays when there is loss of asset.
36
Which of the following statement is true?
Discuss
Answer & Solution
Answer: Option D
Solution:
The purpose of many insurance policies is to provide a replacement for lost, damaged or destroyed goods. Hence, insurance pays when there is loss of asset.
37
Which of the following statements is true?
Discuss
Answer & Solution
Answer: Option A
Solution:
Insurance pays when there is loss of asset. Insurance is a method of sharing the losses of a 'few' by 'many'. property to assess the risk for rating purposes.
38
Which of the below option best describes the process of insurance?
Discuss
Answer & Solution
Answer: Option B
Solution:
Sharing the losses of few by many best describes the process of insurance.
39
Who devised the concept of HLV?
Discuss
Answer & Solution
Answer: Option C
Solution:
Dr. Huebner is known widely as "the father of insurance education." He originated the concept of "human life value", which became a standard method of calculating insurance value and need.
40
Which one of the following statements is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
Both the statements are correct.
People hesitate to buy life insurance because they are not aware of their needs and people hesitate to buy life insurance because they prefer to enjoy the present.