Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Accept with reduced sum assured

B. Reject the proposal

C. Accept with lien

D. Accept with extra premium

A. Policyholder cannot earn market rate of interest on his cash value

B. In universal life plan, policyholder can vary payments of premium

C. Universal life plan is a traditional plan of assurance

D. Variable life insurance is a temporary plan of insurance

A. Young people are mostly dependent

B. Old people can afford to pay more

C. Mortality is related to age

D. Mortality is inversely related to age

A. Returns depend on when the investment was made

B. Different investment blocks get different returns

C. It is also called segmented or investment block method

D. All of the above

A. More

B. Less

C. High

D. Any of the above

A. Traditional cash value plans

B. Non-traditional plans

C. Both A & B

D. None of the above

A. The policy document has to be signed by a competent authority, but need not be compulsorily stamped according to the Indian Stamp Act

B. The policy document has to be signed by a competent authority and should be stamped according to the Indian Stamp Act

C. The policy document need not be signed by a competent authority, but should be stamped according to the Indian Stamp Act

D. The policy document neither needs to be signed by a competent authority nor it needs to be compulsorily stamped according to the Indian Stamp Act

A. Equal cash flows at equal time intervals forever

B. Equal cash flows at equal time intervals for a specific time period

C. Lumpy cash flows at equal time intervals forever

D. Lumpy cash flows at equal time intervals for a specific time period

A. The total sum insured floats amongst the family members

B. Husband/wife, children and parents/parents-in-law can be covered

C. Both A & B

D. None of the three

A. Transfer

B. Switching

C. Assignment

D. Loan