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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-7 section-1

Each section contains 100 MCQs on Insurance .
61
For a household insurance policy, insurable interest need only exist at outset and at what other point?
Discuss
Answer & Solution
Answer: Option B
Solution:
For a household insurance policy, insurable interest need only exist at outset and the date a claim occurs.
62
Rahul is employed by Sunny. In respect of this employment, Rahul automatically has an insurable interest in Sunny’s life up to what limit, if any?
Discuss
Answer & Solution
Answer: Option A
Solution:
Rahul is employed by Sunny. In respect of this employment, Rahul automatically has an insurable interest in Sunny’s life up to Rahul's monthly salary.
63
Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?
Discuss
Answer & Solution
Answer: Option D
Solution:
Arun started a 20-year term insurance policy. Once established, the insurer is next entitled to ask him for proof of continuing good health when a lapsed policy is revived.
64
The concept of indemnity is based on the key principle that policyholders should be prevented from
Discuss
Answer & Solution
Answer: Option D
Solution:
The concept of indemnity is based on the key principle that policyholders should be prevented from profiting from insurance. One of the basic tenets of insurance, that the insured should not profit from a loss or damage but should be returned (as near as possible) to the same financial position that existed before the loss or damage occurred.
65
Once an absolute assignment is effected under a life insurance policy, who will be the titleholder(s) of this policy?
Discuss
Answer & Solution
Answer: Option B
Solution:
Once an absolute assignment is effected under a life insurance policy, The assignee in all cases will be the titleholder(s) of this policy. Transfer by the holder of a life insurance policy (the assignor) of the benefits or proceeds of the policy to a lender (the assignee), as a collateral for a loan.
66
A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the
Discuss
Answer & Solution
Answer: Option D
Solution:
A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the Material facts change.
67
A policy document for a money-back policy includes the statement of the proposal and declaration signed by the proposer form the basis of the contract's. In which main section of the policy document will this normally appear?
Discuss
Answer & Solution
Answer: Option C
Solution:
A policy document for a money-back policy includes the statement of the proposal and declaration signed by the proposer form the basis of the contract's. In Preamble section of the policy document will this normally appear.
68
A life insurance policy can only be made paid up if what particular policy feature exists?
Discuss
Answer & Solution
Answer: Option D
Solution:
A life insurance policy can only be made paid up if Savings element policy feature exists.
69
The main reason why a life insurance proposal form often asks for the proposer's height is to enable a reasonable comparison with the proposer’s
Discuss
Answer & Solution
Answer: Option D
Solution:
The main reason why a life insurance proposal form often asks for the proposer's height is to enable a reasonable comparison with the proposer’s Weight.
70
Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?
Discuss
Answer & Solution
Answer: Option C
Solution:
Where annually increasing flexible premiums operate under a life insurance policy, 5.00% of increase will generally apply.