Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Policy is an evidence of contract between the insurer and the insured

B. FPR signifies the commencement of the contract

C. A life insurance policy is subject to Indian Stamp Act

D. All of the above

A. A complaint can be launched against public insurer only

B. A complaint can be launched against a private insurer and a public insurer

C. A complaint can be launched against a private insurer only in the life sector

D. A complaint can be launched against a private insurer only in the non-life sector

A. Cash bonus

B. Compound bonus

C. Dividend

D. Reversionary bonus

A. There is no harm if an agent shares his commission with his client who has taken a policy from him

B. Sharing a part of the agent's commission is after all a trade practice and therefore, not objectionable

C. The agent is not obliged to disclose his commission to his client even if asked by the latter

D. The agent has to show his licence to his prospect-customer on demand

A. Insurance agent should indicate the scale of commission if asked by the customer

B. Insurance agent should share the commission by way of rebate

C. Insurance agent should disclose his licence on demand

D. Insurance agent should indicate the premium to be charged

A. Insurable interest

B. Indemnity

C. Proximity

D. Uberrima fides

A. Spouse

B. Business partner

C. Tenant

D. Self

A. Cash value is not guaranteed

B. Minimum death benefit is guaranteed in variable insurance plans

C. Where to keep the money invested is the decision of the policyholder

D. Flexible premium payments are allowed in such policies

A. Premium

B. Proposal

C. Understanding

D. Acceptance

A. Whole life

B. Endowment

C. Money back

D. Term insurance