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-8 section-8

Each section contains 100 MCQs on Insurance .
71
In Variable insurance plan, the policy reserves are placed in _________ fund which do not form part of its general investment account.
Discuss
Answer & Solution
Answer: Option B
Solution:
In Variable insurance plan, the policy reserves are placed in Separate fund which do not form part of its general investment account.
72
In which type of policy, death benefits and cash value varied with investment experience?
Discuss
Answer & Solution
Answer: Option D
Solution:
In Variable life insurance policy, death benefits and cash value varied with investment experience. A variable life insurance policy does offer a guaranteed death benefit, which will not fall below a minimum amount even if the invested assets devalue significantly. The variable death benefit is equal to the cash value at the time of death, plus the face value of the insurance.
73
In respect of Traditional plans, which of the following statement is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
Both the statements are correct in respect of traditional plans.
Policyholder’s bonus depend on periodic valuation of Assets & Liabilities and Bonus did not directly reflect the value of assets of the insurer.
74
In Unit Linked policies, the benefits are determined by the _________ of units credited to the policyholder’s account on the date on which payment is due.
Discuss
Answer & Solution
Answer: Option B
Solution:
In Unit Linked policies, the benefits are determined by the Value of units credited to the policyholder’s account on the date on which payment is due.
75
Units in a Unit Linked policy are purchased through payment of a
Discuss
Answer & Solution
Answer: Option C
Solution:
Units in a Unit Linked policy are purchased through payment of a Single premium or Regular premium.
76
Name the deductions made from policyholder of a Unit Linked policy.
Discuss
Answer & Solution
Answer: Option D
Solution:
In a Unit Linked Plan (ULIP), the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. Charges are deducted.
77
The value of the units of a Unit Linked policy is termed as :
Discuss
Answer & Solution
Answer: Option B
Solution:
The value of the units of a Unit Linked policy is termed as Net Asset Value. Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value.
78
What could be the basis for choice of fund in a Unit Linked policy?
Discuss
Answer & Solution
Answer: Option C
Solution:
Investment need and Risk profile could be the basis for choice of fund in a Unit Linked policy. Unit linked insurance plans allow policy takers to closely monitor their portfolios. They also offer the flexibility to switch your capital between funds with varying risk-return profiles.
79
With regard to Unit Linked policy, who bears the expense and mortality risk?
Discuss
Answer & Solution
Answer: Option A
Solution:
With regard to Unit Linked policy, Ins. Co. bears the expense and mortality risk. These are charges to provide for the cost of insurance coverage under the plan. Mortality charges depend on a number of factors such as age, amount of coverage (sum assured) etc. and are deducted on monthly basis. This charge will be deducted proportionately from each of the fund(s) you have chosen.
80
In Unit Linked policies, the risk cover is a multiple of _________
Discuss
Answer & Solution
Answer: Option D
Solution:
In Unit Linked policies, the risk cover is a multiple of Premiums. A unit linked insurance plan (ULIP) is an investment product that provides for insurance payout benefits. ULIP offerings are primarily concentrated in India. The investment vehicle requires a premium payment which is invested in investment products for capital appreciation.