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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-5 section-8

Each section contains 100 MCQs on Insurance .
41
With reference to Inflation, which of the following statement is not correct?
Discuss
Answer & Solution
Answer: Option B
Solution:
Inflation means more purchasing power. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.
42
Of late, changing lifestyles of people lead to more _________
Discuss
Answer & Solution
Answer: Option D
Solution:
Of late, changing lifestyles of people lead to more borrowings. A debt cycle is continual borrowing that leads to increased debt, increasing costs, and eventual default.
43
Which is not a part of Cash planning exercise?
Discuss
Answer & Solution
Answer: Option D
Solution:
Buying less insurance is not a part of Cash planning exercise. If you buy more insurance than it is a part of cash planning.
44
Estate planning would take care of devolution of one’s estate soon after his
Discuss
Answer & Solution
Answer: Option D
Solution:
Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes.
45
Which of the following process does not cover Estate planning?
Discuss
Answer & Solution
Answer: Option A
Solution:
Surrender process does not cover Estate planning. Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death.
46
Which of the following statements is incorrect?
Discuss
Answer & Solution
Answer: Option C
Solution:
Product is not an end by itself. A product can be a service or an item.
47
Endowment assurance does not possess which of the following property?
Discuss
Answer & Solution
Answer: Option C
Solution:
Endowment assurance does not possess Survival Benefit. An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.
48
Endowment insurance is a combination of which of the following 2 features:-
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
49
Which of the following statement is correct in respect of Endowment policy?
Discuss
Answer & Solution
Answer: Option B
Solution:
Shorter the policy term, larger the investment element is correct in respect of Endowment policy.
50
Identify the correct statement from the following:-
Discuss
Answer & Solution
Answer: Option C
Solution:
Non-participating policies could be offered in linked or non-linked platform. Life insurance policy whose policyholders do not receive dividends, because they are not participants in the interest, dividends, and capital gains earned by the insurer on premiums paid.