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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-6

Each section contains 100 MCQs on Insurance .
51
Inaccurate statements in proposal without any fraudulent intention are
Discuss
Answer & Solution
Answer: Option B
Solution:
Inaccurate statements in proposal without any fraudulent intention are merely misrepresentation. There are three main types of misrepresentation, fraudulent, negligent, and innocent.
52
Who of the below mentioned parties is not eligible to enter into a contract?
Discuss
Answer & Solution
Answer: Option D
Solution:
Minor is not eligible to enter into a contract. Minors are individuals who are under the age of 18. Minors are not considered to have legal capacity, meaning they do not have the ability to make contracts with other people. If a minor signs a contract, they have the ability to void the deal with certain exceptions.
53
Proximate cause in this case is this
Discuss
Answer & Solution
Answer: Option C
Solution:
Proximate cause in this case is Ramesh falling off a horseback and suffers a grave injury. Proximate Cause is the actions of the person (or entity) who owes you a duty must be sufficiently related to your injuries such that the law considers the person to have caused your injuries in a legal sense.
54
Which is the following item is good for wealth accumulation purposes?
Discuss
Answer & Solution
Answer: Option B
Solution:
Investment in shares is good for wealth accumulation purposes. Individuals have financial goals which motivate them to invest in specific havens. However, the choice of investment avenue can make or break the realisation of financial dreams. It is because of the forces of inflation and taxes. These tend to reduce the purchasing power of your money and impede faster wealth accumulation.
55
How does investment duration affect returns?
Discuss
Answer & Solution
Answer: Option B
Solution:
investment duration affect returns with greater duration of investment returns are larger. Generally, the higher the duration of a bond or a bond fund (meaning the longer you need to wait for the payment of coupons and return of principal), the more its price will drop as interest rates rise.
56
What is responsible for a rise in general price levels of goods and services in a nation’s economy?
Discuss
Answer & Solution
Answer: Option A
Solution:
Inflation is responsible for a rise in general price levels of goods and services in a nation’s economy. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods.
57
State which is correct out of the following
Discuss
Answer & Solution
Answer: Option B
Solution:
Term policy is available both a separate policy and as a rider in another policy.
58
Which is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
A convertible policy can be converted into another type of insurance policy at the same insurance company. Typically, convertible insurance deals with a level-term insurance policy that can be converted into a permanent/cash value policy that may be some form of whole life or universal life.
59
Stet the correct statement?
Discuss
Answer & Solution
Answer: Option A
Solution:
In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy.
60
Universal Life Insurance is associated with
Discuss
Answer & Solution
Answer: Option D
Solution:
Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.