Insurance MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10

31.
Prospecting in an insurance sale is

A. Gathering the names of people who may be interested in insurance

B. Preparing a list of all the persons in a city

C. Enlisting all the policyholders of a branch office

D. Preparing a list of all the agents in a neighborhood

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32.
According to common law, when should insurable interest be present in a life insurance contract?

A. At the time of taking policy

B. At the time of claim

C. Both A & B

D. None of the above

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33.
The dividends declared under contribution method can be

A. Paid by cash or by reducing future premiums

B. Allowed to purchase non-forfeitable paid up additions

C. Accumulated with interest to be withdrawn at the option of the policy holder

D. None of the three

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34.
Which of the following options are correct?

A. Life insurance selling is different from selling other items

B. Life insurance involves concept of selling and hence, is challenging

C. An agent has to create, in his client's mind, a need for life insurance

D. All of the above

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35.
Which of the following statements is correct

A. Ethical behavior is impossible while selling insurance

B. Ethical behavior is not necessary for insurance agents

C. Ethical behavior helps in developing trust between the agent and the insurer

D. Ethical behavior is expected from the top management only

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36.
Which of the following statements is incorrect?

A. Money laundering is an illegal practice of bringing money into nation's economy by hiding its source and the true identity of the person involved

B. Life Insurance Company will return the entire premium under free look provisions

C. Moral hazard is not easily assessable unlike physical risk of the proposer

D. Standard and non-standard age proofs are not mutually interchangeable

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37.
Which of the following could be termed as a transactional product?

A. Insurance

B. Shares

C. Real estate

D. Bank deposits

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38.
Terminal bonus is payable at the time of

A. Surrender

B. Maturity/death

C. Loan

D. None of the three

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39.
Restructuring of debts refers to

A. Swapping less interest loans with more interest loans

B. Modification of the terms of a loan to debtor who could default on payments

C. Closing all outstanding loans

D. Going for more and more borrowings

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40.
An insurance agent is typically a representative of

A. Customer

B. Insurance company

C. Government

D. IRDA

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Insurance MCQ Questions and Solutions with Explanations | Commerce

31. Prospecting in an insurance sale is

Answer & Solution

32. According to common law, when should insurable interest be present in a life insurance contract?

Answer & Solution

33. The dividends declared under contribution method can be

Answer & Solution

34. Which of the following options are correct?

Answer & Solution

35. Which of the following statements is correct

Answer & Solution

36. Which of the following statements is incorrect?

Answer & Solution

37. Which of the following could be termed as a transactional product?

Answer & Solution

38. Terminal bonus is payable at the time of

Answer & Solution

39. Restructuring of debts refers to

Answer & Solution

40. An insurance agent is typically a representative of

Answer & Solution

Read More Section(Insurance)

31.
Prospecting in an insurance sale is

32.
According to common law, when should insurable interest be present in a life insurance contract?

33.
The dividends declared under contribution method can be

34.
Which of the following options are correct?

35.
Which of the following statements is correct

36.
Which of the following statements is incorrect?

37.
Which of the following could be termed as a transactional product?

38.
Terminal bonus is payable at the time of

39.
Restructuring of debts refers to

40.
An insurance agent is typically a representative of