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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-8

Each section contains 100 MCQs on Insurance .
31
Which of the following could be classified as Nondisclosure?
Discuss
Answer & Solution
Answer: Option C
Solution:
Inadvertent omission of information and Intentional suppression of information (Concealment) could be classified as Nondisclosure.
32
Which of the following could be termed Misrepresentation?
Discuss
Answer & Solution
Answer: Option C
Solution:
Both Innocent misrepresentation and fraudulent misrepresentation could be termed Misrepresentation. Innocent misrepresentation is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract.
33
When an insurance contract can be declared void?
Discuss
Answer & Solution
Answer: Option C
Solution:
Insurance contract can be declared void in both Innocent misrepresentation and fraudulent misrepresentation. Innocent misrepresentation is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract.
34
Why insurance contract is an Adhesion Contract?
Discuss
Answer & Solution
Answer: Option A
Solution:
Adhesion contract is a legally binding agreement between two parties to do a certain thing, in which one side has all the bargaining power and uses it to write the contract primarily to his or her advantage.
35
Which of the following is not a long term goal of an individual?
Discuss
Answer & Solution
Answer: Option C
Solution:
Buying a TV set is not a long term goal of an individual. A long-term goal is something you want to accomplish in the future. Long-term goals require time and planning.
36
Which of the following could be termed the need of an individual?
Discuss
Answer & Solution
Answer: Option D
Solution:
Specific transaction needs, General transaction needs and Meeting contingencies could be termed the need of an individual.
37
Which of the following is a Contingency product?
Discuss
Answer & Solution
Answer: Option D
Solution:
Insurance is a Contingency product. The Contingency Insurance Industry is a specialized group of individuals that deal with insurance products that usually fall outside of the more easily recognized property, marine, casualty, and financial services departments of most companies.
38
Contingency products typically address which type of need?
Discuss
Answer & Solution
Answer: Option B
Solution:
Contingency products typically address against uncertainties. A contingency is a potential negative event that may occur in the future, such as an economic recession, natural disaster, fraudulent activity or a terrorist attack.
39
At young age, one tends to be
Discuss
Answer & Solution
Answer: Option B
Solution:
At young age, one tends to be aggressive. It means behaving in an angry and violent way towards another person.
40
Which of the following is incorrect? (i) - The longer the period of investment, the more they will multiply.
(ii)– The lesser the period of investment, the greater they will multiply.
Discuss
Answer & Solution
Answer: Option B
Solution:
The lesser the period of investment, the greater they will multiply is incorrect because if period of investment will be less, the result will also be less.