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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-10

Each section contains 100 MCQs on Insurance .
61
What does the letter 'S' denote in the term IFSC?
Discuss
Answer & Solution
Answer: Option C
Solution:
The Indian Financial System Code (IFSC CodE. is an alphanumeric code that uniquely identifies a bank-branch participating in the Real-Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems.
62
A method of valuing insured property or the value computed by that method is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Actual Cash Value (ACV) is a method of valuing insured property or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.
63
SEF is abbreviated as _________
Discuss
Answer & Solution
Answer: Option A
Solution:
SEF is abbreviated as Standard Endorsement Form.
64
Which of the following is a combination of insurance as well as an investment?
Discuss
Answer & Solution
Answer: Option C
Solution:
Unit Link Insurance Plan is basically a combination of insurance as well as investment, while mutual funds are a pure investment avenue
65
Investment in ULIPs is related to which section of the Income Tax Act?
Discuss
Answer & Solution
Answer: Option D
Solution:
Investment in ULIPs is eligible for tax benefit up to a maximum of Rs A. 5 lacs under Section 80C of the Income Tax Act.
66
The first part of the policy document deals with
Discuss
Answer & Solution
Answer: Option B
Solution:
A policy schedule is an outline of the cover provided under the policy. It will show details of the policyholder, what the policyholder does and the cover given, and the relevant limits, sums insured and excess.
67
Where was the Universal Life Policy introduced first?
Discuss
Answer & Solution
Answer: Option A
Solution:
Universal life insurance. Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States.
68
For the subsequent premiums received by the insurance company after the first premium, the company will issue _________.
Discuss
Answer & Solution
Answer: Option D
Solution:
For the subsequent premiums received by the insurance company after the first premium, the company will issue Renewal premium receipt.
69
When an applicant is seeking license for the first time, he / she is supposed to undergo _________of practical training (from an approved institution) in life insurance.
Discuss
Answer & Solution
Answer: Option B
Solution:
When an applicant is seeking license for the first time, he / she is supposed to undergo 50 hours of practical training (from an approved institution) in life insurance.
70
Which of the below forms first part of a standard insurance policy document?
Discuss
Answer & Solution
Answer: Option A
Solution:
Policy schedule forms first part of a standard insurance policy document. The standard policy document typically has three parts which are the policy schedule, standard provisions and the policy's specific provisions.