Insurance MCQ Questions and Solutions with Explanations | Commerce

All of the above are correct.
If dispute is not settled through mediation, Ombudsman will pass an award within 3 months of receipt of the compliant. If the award is acceptable to the insured, it is binding on the insurer to implement the award and If the insured does not accept the award, it is not implementable at insurer's level.

If there is any delay in settlement of claim within 30 days, other than an early claim, the insurer has to pay Bank interest + 2% rate of interest.

Most people buy life insurance to protect against the risks of dying too soon. Now, there are new products offering the same protection if you live too long.

In both cases, special reports are necessary. If the insurance is being proposed for the first time after 50 years of age, there is a need to suspect moral hazard and enquire about why such insurance was not taken earlier. We must also note that chances of occurrence of degenerative diseases, like diseases of the heart and kidney failure, increase with age and become high at older ages.
Life insurers may also seek for some special reports when proposals are submitted for high sums assured/advanced ages or a combination of both.

All the given statements are correct.
Revival of a lapsed policy is subject to certain conditions as set out by the underwriter, Revival of a lapsed policy cannot increase the risk for the insurer and Fresh medical examination report is not always required for revival of a lapsed policy.

Reversionary Bonuses are declared regularly and paid at the end (at the time of claim), i.e. on maturity of policy or death of the person. Hence, option (3) is incorrect.

An officer can conduct special enquiry in the case of death claim on suspicion of suppression of facts.

An agent licenced to act as such for an insurer is required to have a licence under Section 42 of the Insurance Act, 1938 for procuring and continuing insurance business against payment of commission by the insurer.
Banks can now act as brokers for life insurance businesses.
It is not mandatory for an individual to be a trained person to work for an insurance company.
Hence, option (2) is the correct answer.

A composite insurance agent means an individual who is appointed as an insurance agent by two or more insurers, subject to the condition that he/she shall not act as insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the mono-line insurers.

The insurable interest of a mortgagor in the mortgage's life is equal to the amount of original loan.