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

41.
What is a policy withdrawal?

A. Discontinuation of premium payment by policyholder

B. Surrender of policy in return for acquired surrender value

C. Policy upgrade

D. Policy downgrade

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42.
Which of the below is one of the ways of defining surplus?

A. Excessive liabilities

B. Excessive turnover

C. Excess value of liabilities over assets

D. Excess value of assets over liabilities

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43.
Which of the below is not a component of ULIP premiums?

A. Policy allocation charge

B. Investment risk premium

C. Mortality charge

D. Social security charge

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44.
Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of _________.

A. Sum assured chosen by the buyer

B. Type of policy chosen by the buyer

C. Term of the plan chosen by the buyer

D. Mode of payment (cash, cheque, card) chosen by the buyer

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45.
Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?

A. Lower the interest rate assumed, lower the premium

B. Higher the interest rate assumed, higher the premium

C. Higher the interest rate assumed, lower the premium

D. The interest rates don’t affect premiums

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46.
With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets.

A. Discounted future value

B. Discounted present value

C. Market value

D. Book value

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47.
In case of _________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses.

A. Reversionary bonus

B. Compound bonus

C. Terminal bonus

D. Persistency bonus

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48.
Which of the below is an example of standard age proof?

A. Ration card

B. Horoscope

C. Passport

D. Village Panchayat certificate

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49.
Which of the below can be attributed to moral hazard?

A. Increased risky behaviour following the purchase of insurance

B. Increased risky behaviour prior to the purchase of insurance

C. Decreased risky behaviour following the purchase of insurance

D. Engaging in criminal acts post being insured

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50.
Which of the below features will be checked in a medical examiner’s report?

A. Emotional behaviour of the proposer

B. Height, weight and blood pressure

C. Social status

D. Truthfulness

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Insurance MCQ Questions and Solutions with Explanations | Commerce

41. What is a policy withdrawal?

Answer & Solution

42. Which of the below is one of the ways of defining surplus?

Answer & Solution

43. Which of the below is not a component of ULIP premiums?

Answer & Solution

44. Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of _________.

Answer & Solution

45. Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?

Answer & Solution

46. With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets.

Answer & Solution

47. In case of _________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses.

Answer & Solution

48. Which of the below is an example of standard age proof?

Answer & Solution

49. Which of the below can be attributed to moral hazard?

Answer & Solution

50. Which of the below features will be checked in a medical examiner’s report?

Answer & Solution

Read More Section(Insurance)

41.
What is a policy withdrawal?

42.
Which of the below is one of the ways of defining surplus?

43.
Which of the below is not a component of ULIP premiums?

44.
Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of _________.

45.
Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?

46.
With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets.

47.
In case of _________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses.

48.
Which of the below is an example of standard age proof?

49.
Which of the below can be attributed to moral hazard?

50.
Which of the below features will be checked in a medical examiner’s report?