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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-5

Each section contains 100 MCQs on Insurance .
31
Moral hazard by health insurance companies can result in _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Moral hazard by health insurance companies can result in adverse selection. Adverse selection occurs when there's a lack of symmetric information prior to a deal between a buyer and a seller.
32
Primary care can be described as _________.
Discuss
Answer & Solution
Answer: Option C
Solution:
Primary care can be described as first point of contact for people seeking healthcare. Primary care includes health promotion, disease prevention, health maintenance, counseling, patient education, diagnosis and treatment of acute and chronic illnesses in a variety of health care settings (e.g., office, inpatient, critical care, long-term care, home care, day care, etc.).
33
_________ is an insured who undergoes treatment after getting admitted in a hospital.
Discuss
Answer & Solution
Answer: Option A
Solution:
Inpatient is an insured who undergoes treatment after getting admitted in a hospital.
34
_________ refers to a hospital/health care provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility
Discuss
Answer & Solution
Answer: Option B
Solution:
Network provider refers to a hospital/health care provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility.
35
The sum assured under keyman insurance policy is generally linked to which of the following?
Discuss
Answer & Solution
Answer: Option B
Solution:
The sum assured under keyman insurance policy is generally linked to Business profitability. Keyman is a term insurance policy where the sum assured is linked to the profitability of the company rather than the key person's own income. The premium is paid by the company. This is tax efficient as the entire premium is treated as business expense. In case the key person dies, the benefit is paid to the company.
36
Mortgage redemption insurance (MRI) can be categorised under _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Mortgage redemption insurance (MRI) can be categorised under decreasing term life assurance. It is basically a decreasing term life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he/she dies before its full repayment.
37
The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called Mortgage.
38
Which of the below policy can provide protection to home loan borrowers?
Discuss
Answer & Solution
Answer: Option C
Solution:
Mortgage Redemption Insurance (MRI) is an insurance policy that provides financial protection for home loan borrowers. It is basically a decreasing term life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he/she dies before its full repayment.
39
What does the term “premium” denote in relation to an insurance policy?
Discuss
Answer & Solution
Answer: Option B
Solution:
The term premium denotes the price that is paid by an insured for purchasing an insurance policy.
40
Which of the below is not a factor in determining life insurance premium?
Discuss
Answer & Solution
Answer: Option B
Solution:
Rebate is not a factor in determining life insurance premium. Rebate is a portion of the agent's commission returned to an insured or anything else of value given an insured as an inducement to buy.