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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-6

Each section contains 100 MCQs on Insurance .
61
State the correct options
Discuss
Answer & Solution
Answer: Option B
Solution:
ULIPS have clear aspects of term, expenses and savings components. Unit Linked Insurance Plan is a financial product that offers you life insurance as well as an investment like a mutual fund.
62
State the correct statement
Discuss
Answer & Solution
Answer: Option D
Solution:
Both plans are allowed by the IRDA in India. As per IRDA norms ULIPs are allowed but not Variable life plans and Only variable plans are allowed but not ULIP policies as per IRDA norms.
63
Liquidation period refers to
Discuss
Answer & Solution
Answer: Option B
Solution:
Liquidation period refers to Period during which Annuity payments are made by the insurer. Liquidation period is time frame during which an annuitant receives income payments from the insurance company, usually on a monthly basis. The obligations of the company to the annuitant during the liquidation period depend on whether it is a pure or refund annuity.
64
Who provides public pensions?
Discuss
Answer & Solution
Answer: Option C
Solution:
State provides public pensions. Public pension plans typically provide pensions based on members' years of service and average salary over a specified number of years of employment.
65
An annuity with infinite life with continuous payments of annuities by the insurer is
Discuss
Answer & Solution
Answer: Option B
Solution:
An annuity with infinite life with continuous payments of annuities by the insurer is annuity in perpetuity.
66
State the correct option
Discuss
Answer & Solution
Answer: Option B
Solution:
Premium paid towards health cover earns income tax rebate under sec.80D of the Income Tax Act. The benefit is available to individuals on health insurance premium paid for self, spouse, children and parents. Importantly, it does not matter whether the children or parents are dependent on you or not.
67
What is the grace period allowed by the Regulator for renewal in health insurance policy?
Discuss
Answer & Solution
Answer: Option C
Solution:
30 days grace period is allowed by the Regulator for renewal in health insurance policy.
68
State which is a correct statement of the following.
Discuss
Answer & Solution
Answer: Option B
Solution:
Cashless facility means a facility extended by an insurer to the insured where payments are made directly by the insurer to the network provider subject to preauthorisation. Cashless policies mean that the health insurance company settles the bill directly with healthcare provider, whether a hospital or a nursing home.
69
Which is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
If a trustee is not appointed the policy money can only be paid to the official trustee of the state.
70
In a keyman’s policy
Discuss
Answer & Solution
Answer: Option D
Solution:
In a keyman’s policy the premium paid by the employer is treated as an allowable business expense, in a death claim the policy money is payable to the company and death claim proceeds are treated as taxable income of the employer.