Insurance MCQ Questions and Solutions with Explanations | Commerce

The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result a terminal bonus. Terminal Bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity. Its value is not guaranteed and will be disclosed only at the time of policy maturity.

The sum insured under a life insurance policy once the period of the lien expires it increases.

The main protection need of a 19-year-old is most likely to be Self-protection.

Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. This addresses his role as an employer.

The need for investment advice from an insurance agent normally results from lack of market knowledge.

When undertaking financial planning for individuals without capital, Emergency funds savings need is likely to be addressed in every single case. An emergency fund is money that you have set aside to specifically cover any unexpected expenses that may come up.

Naveen is addressing his income needs by investing directly in corporate bonds. By Interest payments for he will receive this income.

Named Perils is a property insurance term referring to policies that provide coverage only for the loss caused by the perils specifically listed as covered.

A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as Hacker Insurance.

Coverage against loss through stealing by individuals not in a position of trust is called Theft Insurance. Theft-insurance contracts cover losses from burglary, robbery, and other theft.