ExamVeda
Login
Home

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-2

Each section contains 100 MCQs on Insurance .
61
In relation to annuities, what does “liquidation period” refer to?
Discuss
Answer & Solution
Answer: Option B
Solution:
“Liquidation period” refer to period during which the insurer makes annuity payments.
62
Cold calling is
Discuss
Answer & Solution
Answer: Option C
Solution:
Cold calling is a technique whereby a salesperson contacts individuals who have not previously expressed an interest in the products or services that are being offered.
63
Surplus would arise in an insurance company, if
Discuss
Answer & Solution
Answer: Option B
Solution:
When the actual experience of an insurance company is better than what it had assumed, the result would be surplus (profit) for the company.
64
The main advantage of term insurance lies in
Discuss
Answer & Solution
Answer: Option D
Solution:
The main advantage of term insurance lies in Price. The premium for term plan is lower than that for cash value policies.
65
Survey and inspection of a property is essential
Discuss
Answer & Solution
Answer: Option A
Solution:
Survey and inspection of a property is essential before the acceptance of risk to assess the risk for rating purpose. A survey is an inspection of a property.
66
Risk transfer through risk pooling is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Risk transfer through risk pooling is called insurance. Loss prevention measures reduce the chance of occurrence of risk.
67
What are the two methods of underwriting?
Discuss
Answer & Solution
Answer: Option C
Solution:
Judgement and numerical are the two methods of underwriting. In the judgement method, subjective judgment is used, often relying on the expert opinion of a medical professional known as the medical referee, especially when the deciding case is complex.
68
_________ method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes.
Discuss
Answer & Solution
Answer: Option D
Solution:
Judgmental method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes. Under this method, subjective judgment is used, often relying on the expert opinion of a medical professional known as the medical referee, especially when the deciding case is complex.
69
If a policy document is lost, then
Discuss
Answer & Solution
Answer: Option C
Solution:
If a policy document is lost, then claim may be settled on the basis of an indemnity bond and an advertisement may have to be placed in a newspaper if the amount to be paid is high.
70
On foreclosure of a policy, which of the following is incorrect?
Discuss
Answer & Solution
Answer: Option A
Solution:
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan. On foreclosure of a policy, nothing is payable to the policyholder.