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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-7

Each section contains 100 MCQs on Insurance .
51
What is the duration of grace period in a policy?
Discuss
Answer & Solution
Answer: Option D
Solution:
The duration of grace period in a policy is 31 days.
52
Pick out the correct ones.
Discuss
Answer & Solution
Answer: Option A
Solution:
Nomination can be changed at will by the assured during the course of the policy. There is no limit on how many times a nominee can be changed during the term of a particular policy though some companies may charge money for nomination change.
53
Who of the following may not qualify for a nonmedical underwriting?
Discuss
Answer & Solution
Answer: Option C
Solution:
A worker aged 50 in an underground coal mine may not qualify for a nonmedical underwriting.
54
In which case is the moral hazard present?
Discuss
Answer & Solution
Answer: Option B
Solution:
A race goer with betting habits and usually a heavy consumer of alcohol is the moral hazard present. Moral hazard is the risk that a party has not entered into a contract in good faith or has provided misleading information about its assets, liabilities, or credit capacity.
55
Pick out the correct statement.
Discuss
Answer & Solution
Answer: Option A
Solution:
Personal history and family history of a proposer are equally important. Medical history is an important determinant of longevity and as such is an important consideration for the insurers. There are questions pertaining to the health status of family members of the life to be assured.
56
What is defined an early claim?
Discuss
Answer & Solution
Answer: Option D
Solution:
A claim by death within three years of commencement is defined as an early claim. When a person with a life insurance policy – called a life assured – dies, a claim intimation should be sent to the insurance company as early as possible.
57
State the incorrect sentence
Discuss
Answer & Solution
Answer: Option D
Solution:
There is rider benefit in a policy contract. A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy.
58
In a ULIP claim before the date of maturity will give
Discuss
Answer & Solution
Answer: Option A
Solution:
In a ULIP claim before the date of maturity will give Higher of the sum assured or the fund value.
59
State which is correct.
Discuss
Answer & Solution
Answer: Option D
Solution:
All the above are correct.
There is no difference between an individual agent and a corporate agent as both of them represent an insurance company, An agent can work for a life insurer as also a non-life insurer, either individually or together and A composite agent means an agent working for one life and one non-life insurer.
60
Who will issue licence to an applicant on his certification as per regulations?
Discuss
Answer & Solution
Answer: Option A
Solution:
Designated person in the insurer’s office as authorised by the IRDA will issue licence to an applicant on his certification as per regulations.