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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-9

Each section contains 100 MCQs on Insurance .
71
‘Clause’ under a life insurance policy means –
Discuss
Answer & Solution
Answer: Option A
Solution:
‘clause’ under a life insurance policy means risk not covered.
72
What is the standard length of a grace period under a life insurance policy?
Discuss
Answer & Solution
Answer: Option B
Solution:
One month not less than 31 days is the standard length of a grace period under a life insurance policy. The amount of time granted in an insurance grace period is indicated in the insurance policy contract. Paying after the due date may attract a financial penalty from the insurance company.
73
When a policy is said to lapse?
Discuss
Answer & Solution
Answer: Option D
Solution:
If premiums are not paid within grace period a policy is said to lapse. The typical grace period is 30 days. If the premium is unpaid even after the grace period, the policy would lapse. The process of reviving a policy varies depending on the time lapsed.
74
If the policyholder dies within grace period –
Discuss
Answer & Solution
Answer: Option C
Solution:
If the policyholder dies within grace period claim is payable after deducting the premium. As per the rules, if the death of the policy holder occurs on the due date of the premium payment or during the grace period, still the policy is valid and the beneficiaries will get the sum assured. But after deducting the the unpaid premium for the current year.
75
Revival of a policy is not a _________ right of the insured.
Discuss
Answer & Solution
Answer: Option B
Solution:
Revival of a policy is not a unconditional right of the insured.
76
Revival would be subject to –
Discuss
Answer & Solution
Answer: Option D
Solution:
Revival would be subject to No increase in risk cover, Creation of reserve and Satisfactory evidence of insurability.
77
Satisfactory evidence of insurability would mean –
Discuss
Answer & Solution
Answer: Option B
Solution:
Satisfactory evidence of insurability would mean satisfactory evidence of health. Proof of good health, also known as evidence of insurability (EOI), is an application process in which you provide information on the condition of your health or your dependent's health to get certain types of insurance coverage.
78
If a policy is lapsed for a very short period of time only, what would be the requirement:-
Discuss
Answer & Solution
Answer: Option C
Solution:
If a policy is lapsed for a very short period of time only, Certificate of good health would be the requirement.
79
When a medical report would be called at the time of revival?
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
80
It would be advantageous to Revive a lapsed policy rather than taking a new policy. Most apt reason is -
Discuss
Answer & Solution
Answer: Option D
Solution:
It would be advantageous to Revive a lapsed policy rather than taking a new policy. Most apt reason is -Premium under a new policy would be more based on his latest age.