Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Debt restructuring

B. Transfer of loans

C. Restructuring of investment

D. Purchase of insurance policy

A. It is tax rebates

B. It is a good investment

C. It is protection for loss of economic value of human life in the event of death or disability

D. It leads to wealth accumulation

A. Credit Life Insurance policy is an endowment plan

B. Mortgage Redemption plan is also an endowment plan

C. Whole life plan is also an endowment plan

D. Money Back plan is a kind of endowment plan

A. Inter-temporal allocation of resources refers to timing of such decisions for better returns

B. It refers to temporary allocation of resources

C. It refers to allocation of resources over time

D. In this method resources are diversified in allocation

A. Correlation of life insurance with bonds

B. Correlation of life insurance with equities

C. Combination of protection with savings element

D. Separation of protection and savings element

A. Amount of annuity depends on duration of annuity payments, principal sum of money, investment period and rate of return

B. Amount of annuity does not depend on the principal sum of money

C. Investment period has no relation to the amount of annuity

D. Annuity is independent of rate of return

A. Every pension is a kind of annuity

B. Every annuity is also a pension

C. Pension and annuity are one and the same

D. Every pension is not an annuity

A. Family floater policy does not cover parents

B. Family floater is for self and spouse only

C. Family floater policy covers self, spouse, parents and dependants

D. Uncle and aunt can be covered in a family floater

A. It may lead to community rating

B. It may lead to abuse of health insurance cover

C. Moral Hazard in health insurance would mean adverse selection

D. Risk pooling will be there in moral hazard

A. In emergencies insurer may waive preauthorisation for entering into a hospital for treatment

B. In all cases preauthorisation either by the insurer or TPA is a must before getting admitted into a hospital

C. There is no provision for nomination in a health insurance cover

D. Summary of benefits, terms and conditions for each product in a health cover is not mandatory