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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-5

Each section contains 100 MCQs on Insurance .
61
“A clause precluding death due to pregnancy for a lady who is expecting at the time of writing the contract” will be included in which section of a standard policy document?
Discuss
Answer & Solution
Answer: Option D
Solution:
“A clause precluding death due to pregnancy for a lady who is expecting at the time of writing the contract” will be included in Specific policy provisions.
62
Which of the below statement is false with regards to nomination?
Discuss
Answer & Solution
Answer: Option D
Solution:
A nominee doesnot has full rights on the whole of the claim. In the new insurance law, if an immediate family member such as spouse is made the nominee, then the death benefit will be paid to that person and other legal heirs will not have a claim on the money.
63
When is a policy deemed to be lapsed?
Discuss
Answer & Solution
Answer: Option C
Solution:
If the premium has not been paid even during days of grace policy is deemed to be lapsed. The policy for which all benefits to the policy holder cease and is terminated due to non payment of premium amount on the due date or even after the grace period is called a lapsed policy.
64
Which of the below statement is correct with regards to grace period of an insurance policy?
Discuss
Answer & Solution
Answer: Option D
Solution:
The standard length of the grace period is one month or 31 days. The days of grace may be computed from the next day after the due date fixed for payment of the premium.
65
During the revival of a lapsed policy, which of the below aspect is considered most significant by the insurance company? Choose the most appropriate option.
Discuss
Answer & Solution
Answer: Option A
Solution:
During the revival of a lapsed policy, Evidence of insurability at revival is considered most significant by the insurance company. A lapsed policy means that the benefit of insurance will not be available to protect the financial interest of the dependants in the event of the death of the insured.
66
For an insurance policy nomination is allowed under _________ of the Insurance Act, 1938.
Discuss
Answer & Solution
Answer: Option C
Solution:
For an insurance policy nomination is allowed under Section 39 of the Insurance Act, 1938.
67
Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company?
Discuss
Answer & Solution
Answer: Option B
Solution:
The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company is incorrect with regards to a policy against which a loan has been taken from the insurance company.
68
Which of the below statement is incorrect with regards to assignment of an insurance policy?
Discuss
Answer & Solution
Answer: Option D
Solution:
In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben is incorrect with regards to assignment of an insurance policy.
69
Which of the below alteration will be permitted by an insurance company?
Discuss
Answer & Solution
Answer: Option A
Solution:
Splitting up of the policy into two or more policies will be permitted by an insurance company.
70
Which of the following denotes the underwriter’s role in an insurance company?
Discuss
Answer & Solution
Answer: Option B
Solution:
the underwriter’s role in an insurance company is to decide acceptability of risks. Underwriters work in several insurance categories, including health, life, auto and home. Their job is to review applications for insurance, analyze risks and decide whether the company will offer coverage. Underwriters must approve applications so that the insurance company can collect premiums.