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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-6 section-2

Each section contains 100 MCQs on Insurance .
51
Which of the following are correct?
Discuss
Answer & Solution
Answer: Option D
Solution:
All the three are correct. Prospecting is building a list of persons who can be approached for life insurance. Marketing includes an exercise to meet the account holders of a bank. Meeting known and familiar people who can give an agent interview for life insurance purposes is useful.
52
If assets are overvalued, the result would be
Discuss
Answer & Solution
Answer: Option A
Solution:
If assets are overvalued, the result would be more surplus. As a result of over valuation of all the assets of an insurance company, the company's financial statements would show more surplus than the actual one.
53
Which of the following factors are taken into account for financial underwriting?
Discuss
Answer & Solution
Answer: Option D
Solution:
Income, occupation, lifestyle, habits and many other factors play an important role in financial underwriting.
54
When is it essential for insurable interest to be present in case of life insurance?
Discuss
Answer & Solution
Answer: Option A
Solution:
Insurable interest is essentially a monetary interest which one should have on the continuing existence of the object of insurance. So, it is important for it to be there at the time of taking out insurance.
55
Which of the following is correct?
Discuss
Answer & Solution
Answer: Option A
Solution:
Extra benefits are allowed by the insurer in a life policy on payment of an extra premium and extra premium for health is different from extra premium for extra benefits.
Double accident benefits and Permanent Disability benefits are available on payment of extra premium.
56
Which of the following statements is incorrect with regards to decreasing term assurance?
Discuss
Answer & Solution
Answer: Option B
Solution:
Premium amount increases with the term of coverage. Hence, option (2) is incorrect.
57
Which of the following policies is suitable for a person who cannot temporarily afford to pay high premiums?
Discuss
Answer & Solution
Answer: Option D
Solution:
In Convertible Whole Life, one can avail insurance protection for a large amount at a lower cost as compared to premium of Endowment Assurance.
58
Which of the following is untrue as per IRDA’s regulations on non-par policies?
Discuss
Answer & Solution
Answer: Option B
Solution:
The benefits of an insurance policy are not linked to any index. Hence, option (2) is the correct answer.
59
Which of the following plans have several limitations?
Discuss
Answer & Solution
Answer: Option A
Solution:
Traditional cash value plans have several limitations. If you want to cash in your life insurance early and surrender your coverage to the insurer, you will receive the policy's cash value minus fees.
60
Reversionary bonus is declared as an amount
Discuss
Answer & Solution
Answer: Option D
Solution:
Reversionary bonus is the bonus declared every year as a percentage of (Guaranteed Maturity Benefit/Sum Assured + Earlier Reversionary Bonuses). It is payable on the death of life assured or maturity of the policy.