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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-9 section-9

Each section contains 100 MCQs on Insurance .
81
What is the way to revival a lapsed policy of life insurance?
Discuss
Answer & Solution
Answer: Option D
Solution:
Ordinary revival, Special Revival, Instalment revival is the way to revival a lapsed policy of life insurance. The revival of life insurance policy is required when the insured fails to pay the premium within the grace period and the coverage of the policy lapses.
82
Which is the simplest form of revival?
Discuss
Answer & Solution
Answer: Option A
Solution:
Ordinary revival is the simplest form of revival. As the name implies, ordinary revival is the most simple form of revival. Here, the revival is done simply by paying the delayed premium amount along with the interest charge.
83
Under special revival which is correct?
Discuss
Answer & Solution
Answer: Option D
Solution:
All the above are correct under special revival.
It is as though a new policy is issued by altering DOC, The maturity date also gets altered and difference between old and new premium is payable.
84
What is the condition for special revival?
Discuss
Answer & Solution
Answer: Option B
Solution:
The policy must not have acquired surrender value is the condition for special revival. Typically, one should have paid at least three years' premium to the insurer and thereafter can opt for either one of the 2 above mentioned options for policies with a term of 10 years or more. For policies with a lesser term, at least two years' premium payment is mandatory.
85
A loan-cum revival would mean –
Discuss
Answer & Solution
Answer: Option C
Solution:
A loan-cum revival would mean Granting a loan and Revival of the policy. If a policy acquires the surrender value, the date of the policy can be revived by a policy loan. The loan amount will be calculated and treated as premiums paid upto the date of the revival. If a loan amount is more than the required revival, the excess will be paid to the policyholder.
86
Under the loan cum revival which of the following is correct?
Discuss
Answer & Solution
Answer: Option B
Solution:
Under the loan cum revival, the loan granted would be used as a consideration amount and balance only payable.
87
When instalment revival can be availed?
Discuss
Answer & Solution
Answer: Option C
Solution:
Instalment revival can be availed when policyholder is unable to pay full arrears of premium in lumpsum and when the policy could not be revived under special revival scheme.
88
Who gets benefited if a policy is lapsed?
Discuss
Answer & Solution
Answer: Option D
Solution:
A lapsed policy means that the benefit of insurance will not be available to protect the financial interest of the dependants in the event of the death of the insured.
89
Non-forfeiture provisions means accrual of certain benefits to policyholders if premiums are paid for at least
Discuss
Answer & Solution
Answer: Option C
Solution:
Non-forfeiture provisions means accrual of certain benefits to policyholders if premiums are paid for at least three years.
90
Loan value is a percentage of –
Discuss
Answer & Solution
Answer: Option B
Solution:
Loan value is a percentage of Surrender Value. The loan amount you can take out is a percentage of its surrender value. Usually, loans can be availed up to 80-90% of the surrender value of traditional plans with guaranteed returns.