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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-5

Each section contains 100 MCQs on Insurance .
51
A _________ is a formal legal document used by insurance companies that provides details about the product.
Discuss
Answer & Solution
Answer: Option D
Solution:
A Prospectus is a formal legal document used by insurance companies that provides details about the product.
52
The application document used for making the proposal is commonly known as the
Discuss
Answer & Solution
Answer: Option B
Solution:
The application document used for making the proposal is commonly known as the 'proposal form'.
53
Money laundering is the process of bringing _________ money into an economy by hiding its _________ origin so that it appears to be legally acquired.
Discuss
Answer & Solution
Answer: Option A
Solution:
Money laundering is the process of bringing illegal money into an economy by hiding its illegal origin so that it appears to be legally acquired.
54
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within _________of receiving the policy document.
Discuss
Answer & Solution
Answer: Option D
Solution:
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within 15 days of receiving the policy document.
55
Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?
Discuss
Answer & Solution
Answer: Option C
Solution:
The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges.
56
Which of the below is not a valid address proof?
Discuss
Answer & Solution
Answer: Option B
Solution:
Voter ID Card is not a valid address proof.
57
Which of the following documents is an evidence of the contract between insurer and insured?
Discuss
Answer & Solution
Answer: Option B
Solution:
The policy document is the most important document associated with insurance. It is evidence of the contract between the assured and the insurance company.
58
If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed?
Discuss
Answer & Solution
Answer: Option A
Solution:
if complex language is used to word a certain policy document and it has given rise to an ambiguity, it will generally be construed in favour of insured.
59
Select the option that best describes a policy document.
Discuss
Answer & Solution
Answer: Option A
Solution:
Policy document is a detailed document and it is the Evidence of the insurance contract which mentions all the terms and conditions of the insurance. The insured buys not the policy contract, but the right to the sum of money and its future delivery.
60
Which of the below statement is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
Life insurance policy receipt issued upon payment of the first premium by an applicant. It makes the policy in force before the policy documents are issued, provided the applicant meets all requirements. Also called conditional receipt.