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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-8 section-2

Each section contains 100 MCQs on Insurance .
71
Which of the following statements are correct?
Discuss
Answer & Solution
Answer: Option D
Solution:
All the statements are correct. KYC document is to be collected by the insurer from the proposer, Identification of the proposer is the main purpose of KYC and PAN card is a proof of one's identity while seeking life cover.
72
Revival of a life insurance policy means
Discuss
Answer & Solution
Answer: Option B
Solution:
Revival of a life insurance policy means reinstating a lapsed policy. The documentation requirements for revival or reinstatement of a policy depend on the time elapsed between the date of lapsation and the date when the request for revival has been made by the policyholder.
73
Benefit under a Unit Linked policy is reckoned by
Discuss
Answer & Solution
Answer: Option C
Solution:
Benefit under a Unit Linked policy is reckoned by the value of the units and the number of units standing to the credit of the unit holder.
74
When one is near to his retirement years, the risk profile of an individual could be
Discuss
Answer & Solution
Answer: Option D
Solution:
When one is near to his retirement years, the risk profile of an individual could be conservative. Anyone, senior citizen or millennial, can be a conservative investor.
75
Maturity claim is payable when
Discuss
Answer & Solution
Answer: Option D
Solution:
Maturity claim is payable when the insured survives policy term. Maturity Claim is associated with the Maturity Benefit of the Policy i.e. the claim which arises when the policy matures. It simply means that when the policy completes its tenure, a certain amount of money called Maturity Claim amount is settled towards the life assured.
76
Which of the following statements is correct?
Discuss
Answer & Solution
Answer: Option A
Solution:
In group insurance, a single policy is issued covering many persons. Examples are holders of the same credit card, savings bank account holders of a bank or members of the same social or cultural association.
77
Which of the following statements are 'true'?
1 : The premium under a group insurance policy is constant for all the time to come.
2 : Section 45 of the Insurance Act does not apply to a one year policy.
Discuss
Answer & Solution
Answer: Option A
Solution:
As per Section 45, a policy is not to be called in question on the grounds of misstatement after two years. Hence, statement (B) is false.
78
The term 'Money Laundering' would mean
Discuss
Answer & Solution
Answer: Option D
Solution:
The term 'Money Laundering' is the concealment of the origin of illegally-obtained money, typically by the means of transfers involving foreign banks or legitimate businesses.
79
An insurance agent represents a/an
Discuss
Answer & Solution
Answer: Option A
Solution:
An insurance company is responsible for the acts of its agents and it can be assumed by an insurance applicant that any information or payment of money to the agent will be received by the insurance company.
80
Which of the following are not a part of insurance planning?
Discuss
Answer & Solution
Answer: Option B
Solution:
House loans are not a part of insurance planning. It is a bank loan.