Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Life Insurance contract is between a proposer and his agent for protection of his life’s economic worth

B. Prospectus is in lieu of policy in certain cases

C. Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer

D. There is no difference between a proposal and prospectus

A. Free look period enables the policyholder to return the policy and ask for refund subject to certain conditions

B. Passport & School certificate is a standard proof of age

C. Ration card is a non-standard proof of age

D. All of the above

A. In a medical examiner’s report physical features like height, weight, blood pressure, etc need to be stated for proper risk assessment

B. If a proposal cannot be considered as a non-medical case for underwriting, a medical report is essential

C. There is no such thing as non-medical underwriting

D. Ration card is a non-standard proof of age

A. Standard provisions in a policy document

B. Policy schedule

C. Preamble to the policy

D. Clauses in the policy document

A. Nominee is in every circumstance the owner of the policy proceeds

B. Nomination is entitled to give a valid discharge to an insurer for payment of claim

C. Assignment and nomination are one and the same

D. Even if a policy is assigned to the insurer for a loan it cancels the existing nomination made earlier

A. Insurer in certain circumstances may waive subsequent premiums

B. Policy document and FPR are one and the same

C. RPRs are revival premium receipt

D. After issue of FPR subsequent premiums are to be paid by the assured

A. A minor cannot be named as a nominee in a policy

B. Where nominee is a minor, an appointee has to be appointed by the assured

C. There can only be one nominee and not more

D. If more than one nominee is appointed the policy claim moneys can be shared amongst them

A. Underwriting is risk assessment in a proposal on the life of the proposer for offering him life cover

B. Prevention of selection against the insurer is the purpose of underwriting

C. Underwriting is a needless exercise in today’s environment of inadequate coverage of population for life insurance

D. Underwriting process defines and determines the premium chargeable on the proposal for covering risk

A. In complex cases the underwriter may adopt judgment method, rather than numerical method only

B. Decision as to acceptability of risk is that of the underwriter

C. Postponement of risk is also a kind of underwriting decision

D. All of the above

A. A minor is not eligible for insurance

B. Proposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established

C. A minor has no insurable interest in his life and therefore, is ineligible for insurance

D. Proposal on a minor life can be submitted by anyone