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-1 section-10

Each section contains 100 MCQs on Insurance .
1
Who can do a nomination under the policy?
Discuss
Answer & Solution
Answer: Option C
Solution:
Life Insured can do a nomination under the policy. Nomination is the process by which the policyholder appoints a person or persons to receive policy benefits in case of a death claim.
2
Assignee can do another _________ but cannot do _________
Discuss
Answer & Solution
Answer: Option D
Solution:
Assignee can do another Assignment but cannot do Nomination.
3
Which type of alterations amongst the following is not permitted?
Discuss
Answer & Solution
Answer: Option D
Solution:
Increase in risk type of alterations is not permitted.
4
Which type of alterations amongst the following is not permitted?
Discuss
Answer & Solution
Answer: Option D
Solution:
Extension of term, Change from with profit to without profit and Alterations which result in lowering the premium.
All of the above alterations are not permitted.
5
Anti-selection means -
Discuss
Answer & Solution
Answer: Option A
Solution:
Anti-selection means Tendency of people who expect loss to take insurance eagerly leading to loss to the insurer. Anti-selection is the tendency of people, who suspect or know that their chance of experiencing a loss is high, to seek out insurance eagerly and to gain in the process.
6
If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a –
Discuss
Answer & Solution
Answer: Option D
Solution:
If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims.
7
What are the 2 methods of underwriting?
Discuss
Answer & Solution
Answer: Option C
Solution:
Judgement & Numerical are the 2 methods of underwriting.
Judgement Method: Under this methods, subjective judgement is used.
Numerical Method: Under this method underwriting assign positive rating points for all negative or adverse factors.
8
The medical opinion could be taken from –
Discuss
Answer & Solution
Answer: Option B
Solution:
The medical opinion could be taken from Medical Referee. The role of a medical referee is to scrutinise specific information on the circumstances leading to death.
9
What is lien?
Discuss
Answer & Solution
Answer: Option B
Solution:
A lien is a legal right granted by the owner of property, by a law or otherwise acquired by a creditor. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. A lien is an underwriting decision where decreased death benefit would be payable.
10
Number of cases which gets accepted by the underwriting under Non-medical are –
Discuss
Answer & Solution
Answer: Option C
Solution:
Large Number of cases gets accepted by the underwriting under Non-medical.