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

51.
A _________ is a formal legal document used by insurance companies that provides details about the product.

A. Proposal form

B. Proposal quote

C. Information docket

D. Prospectus

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52.
The application document used for making the proposal is commonly known as the

A. Application form

B. Proposal form

C. Registration form

D. Subscription form

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53.
Money laundering is the process of bringing _ money into an economy by hiding its _ origin so that it appears to be legally acquired.

A. Illegal, illegal

B. Legal, legal

C. Illegal, legal

D. Legal, illegal

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54.
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within _________of receiving the policy document.

A. 60 days

B. 45 days

C. 30 days

D. 15 days

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55.
Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?

A. The insurance company will refund 100% of the premium

B. The insurance company will refund 50% of the premium

C. The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges

D. The insurance company will forfeit the entire premium

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56.
Which of the below is not a valid address proof?

A. PAN Card

B. Voter ID Card

C. Bank passbook

D. Driving licence

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57.
Which of the following documents is an evidence of the contract between insurer and insured?

A. Proposal form

B. Policy document

C. Prospectus

D. Claim form

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58.
If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed?

A. In favour of insured

B. In favour of insurer

C. The policy will be declared as void and the insurer will be asked to return the premium with interest to the insured

D. The policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest

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59.
Select the option that best describes a policy document.

A. It is evidence of the insurance contract

B. It is evidence of the interest expressed by the insured in buying an insurance policy from Co

C. It is evidence of the policy (procedures) followed by an insurance company when dealing with channel partners like banks, brokers and other entities

D. It is an acknowledgement slip issued by the insurance company on payment of the first premium

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60.
Which of the below statement is correct?

A. The proposal form acceptance is the evidence that the policy contract has begun

B. The acceptance of premium is evidence that the policy has begun

C. The First Premium Receipt is the evidence that the policy contract has begun

D. The premium quote is evidence that the policy contract has begun

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Insurance MCQ Questions and Solutions with Explanations | Commerce

51. A _________ is a formal legal document used by insurance companies that provides details about the product.

Answer & Solution

52. The application document used for making the proposal is commonly known as the

Answer & Solution

53. Money laundering is the process of bringing _________ money into an economy by hiding its _________ origin so that it appears to be legally acquired.

Answer & Solution

54. In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within _________of receiving the policy document.

Answer & Solution

55. Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?

Answer & Solution

56. Which of the below is not a valid address proof?

Answer & Solution

57. Which of the following documents is an evidence of the contract between insurer and insured?

Answer & Solution

58. If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed?

Answer & Solution

59. Select the option that best describes a policy document.

Answer & Solution

60. Which of the below statement is correct?

Answer & Solution

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51.
A _________ is a formal legal document used by insurance companies that provides details about the product.

52.
The application document used for making the proposal is commonly known as the

53.
Money laundering is the process of bringing _ money into an economy by hiding its _ origin so that it appears to be legally acquired.

54.
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within _________of receiving the policy document.

55.
Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?

56.
Which of the below is not a valid address proof?

57.
Which of the following documents is an evidence of the contract between insurer and insured?

58.
If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed?

59.
Select the option that best describes a policy document.

60.
Which of the below statement is correct?