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-8

Each section contains 100 MCQs on Insurance .
1
Cost of the risk is product of which of the following 2 factors:
Discuss
Answer & Solution
Answer: Option D
Solution:
Cost of the risk is product of Probability and impact. This means that the total amount of risk exposure is the probability of an unfortunate event occurring, multiplied by the potential impact or damage incurred by the event. If you put a dollar value on the impact, then you can value the risk and in a simple way compare one risk factor to another.
2
Considering insuring an ordinary ball pen is an example of
Discuss
Answer & Solution
Answer: Option B
Solution:
Considering insuring an ordinary ball pen is an example of don’t risk more than you can afford to lose and don’t risk a lot for a little.
3
Considering insuring an oil refinery is example of
Discuss
Answer & Solution
Answer: Option A
Solution:
Considering insuring an oil refinery is example of don’t risk more than you can afford to lose.
4
Which of the following is correct? Statement A. The system of insurance benefits individual, family and the society Statement B. Insurance companies could invest in speculative ventures.
Discuss
Answer & Solution
Answer: Option A
Solution:
The system of insurance benefits individual, family and the society. Insurance benefits individuals, organizations and society in more ways than the average person realizes. Insurance meets statutory and contractual requirements as well as provides evidence of financial resources. Another very important benefit of insurance is promoting risk control activity.
5
Which of the following is untrue?
A. Insurance promotes efficient use of existing resources
B. Insurance contributes to healthy economy and national productivity
C. Insurance policy can be used as a collateral security
Discuss
Answer & Solution
Answer: Option D
Solution:
All the statements are incorrect.
Insurance does not promotes efficient use of existing resources, Insurance does not contribute to healthy economy and national productivity and Insurance policy cannot be used as a collateral security.
6
Providing social security is the obligation of _________
Discuss
Answer & Solution
Answer: Option A
Solution:
Providing social security is the obligation of State. States must progressively realise the right to social security through measures to offer protection, through cash or in kind, which enables individuals and families to acquire at least essential health care, basic shelter and housing, water and sanitation, food, and the most basic forms of education.
7
Which is not an example of social security schemes of the Government?
Discuss
Answer & Solution
Answer: Option A
Solution:
Rajeev Gandhi Equity Scheme is not an example of social security schemes of the Government. The scheme is aimed at encouraging the flow of savings of small investors in the domestic capital market, and presents investors with tax benefits provisioned as a new section, 80CCG, in the Income Tax act.
8
Human Life Value concept measures the value of a human life on the basis of his
Discuss
Answer & Solution
Answer: Option B
Solution:
Human Life Value concept measures the value of a human life on the basis of his Net earnings. The human life value concept deals with human capital, which is a person's income potential. It goes beyond just the numbers and considers the overall impact of losing someone, especially the breadwinner.
9
Human Life Value can be arrived at by dividing by_________
Discuss
Answer & Solution
Answer: Option D
Solution:
Human Life Value can be arrived at by dividing Net earnings by Rate of interest.
10
As per HLV concept, the amount of insurance one can buy could be _________ times of one’s annual income.
Discuss
Answer & Solution
Answer: Option B
Solution:
As per HLV concept, the amount of insurance one can buy could be 10 to 15 times of one’s annual income. We have already seen that an asset is a kind of property that yields value or a return. For most kinds of property the value is measured in precise monetary terms. Similarly the amount of loss of value can also be measured.