Insurance MCQ Questions and Solutions with Explanations | Commerce

A. In a policy document it is now compulsory to indicate the address of the local Ombudsman

B. Address of the insured is optional in the policy document

C. The address of the IRDA is also necessarily shown in the policy document

D. Either the local ombudsman’s address or that of the IRDA needs to be shown in the policy

A. As per law if the premium, for three years, it shall earn a guaranteed surrender value

B. With discontinuance of premium even after three years no surrender value is guaranteed

C. The special revival of a lapsed policy is convenient both from the assured point of view and that of the insurer

D. The most important condition for a policy lapsed for a considerable length of time is evidence of insurable interest

A. If a claim arises in a policy with the death of the assured and if the due premium is not paid and as grace period has not expired, claim will be paid only for The assignment value

B. Nomination is governed by Sec 38 of the Insurance Act1938

C. In the above case full claim for the original sum assured will be paid after deducting the unpaid premium

D. The assignment is governed by Sec 39 of the Insurance Act’1939

A. In assignment the rights of the assured are transferred to the assignee

B. There is no difference between nomination and assignment

C. In a policy loan the loanee-policyholder is not obligated to pay off the loan

D. As a general rule, no alteration is allowed in the first year of the policy

A. Agent is primary underwriter as also field underwriter

B. Numerical method of underwriting is by far the most objective method

C. Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk

D. All of the above

A. Special reports like ECG, EEG, Chest x-ray reports etc are called for in large sums proposed and where the ages of the proposers are higher than otherwise

B. First insurance at age of 50 for a large sum proposed is a sign of moral hazard

C. Family history has no role in risk assessment

D. If there is no relationship between the proposer’s income and the sum proposed moral hazard is suspected

A. Job satisfaction on performing a challenging role to influence his client to go in for his life’s protection

B. Recognition in his circles as a knowledgeable and ethical life insurance adviser with social respect

C. Handsome income through hard work by winning the trust and confidence of his clients

D. All of the above

A. Life insurance needs to be sold, rather than bought

B. Life insurance is intangible unlike a tangible product

C. Value of life insurance is not seen at the time of purchase unlike a consumable product

D. All of the above

A. It is direct approach of the prospect for insurance purposes without any prior announcement or appointment

B. Cold call is not with warmth of familiarity or friendliness

C. It is without any energy or hope as to the result of the effort

D. Cold call is an aimless exercise not serious about the final outcome

A. No, not at this stage

B. Don’t know

C. Yes

D. I will have to think again