Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Young persons may not have much income to pay for the insurance

B. Older persons can afford to pay more for their insurance

C. Younger persons have lower mortality on account of lower age

D. Younger the age higher the mortality

A. Consideration

B. Offer and Acceptance

C. Free Consent by the parties to the contract

D. Capacity to contract

A. Srikant’s wife

B. 'Nominee in Srikant’s policy

C. 'Srikant’s widow and children

D. Ramesh

A. An individual with aggressive risk appetite is likely to follow consolidation

B. An individual with aggressive risk profile is likely to follow wealth accumulation

C. An individual with high risk profile is likely to follow gifting

D. A person with risk aggressive style is likely to follow spending

A. Bank Deposits

B. Non life Insurance policy

C. Life Insurance

D. Shares

A. Endowment policy

B. Whole Life Policy

C. Money Back Policy

D. Mortgage Redemption policy

A. Premium will increase over time

B. Premium will decrease over time

C. In decreasing term insurance the premium is constant through the term

D. Premium is returned periodically

A. In decreasing term policy the premium will fall each year

B. In decreasing term cover the premium is the same throughout the policy duration

C. Policy benefits will also decrease over the policy period

D. Mortgage redemption policy is nothing but a term insurance cover

A. It is easy to know cash value and savings value components in a traditional plan

B. In a traditional life insurance it is not easy to ascertain the rate of return

C. Surrender value can easily be arrived at in such policies

D. Rate of return is always high in such policies

A. Persons with low risk appetite

B. Persons who look for predetermined and fixed returns of interest

C. Persons with comfort in equity on account of their knowledge

D. Generally young persons