Insurance MCQ Questions and Solutions with Explanations | Commerce

A. To bargain for cheaper mortgage rates from loan provider

B. To continuously protect the value of the mortgaged property

C. To escape court action of attachment in case of default or indebtedness

D. To act as a collateral for ensuring financial protection for home loan borrowers

A. Rebate in premium is a discount allowed by the insurer in festival seasons to boost business

B. Rebate is an allowed deduction in large sums assured and low frequency mode of payment

C. Rebate is illegal as it is a kind of bribery

D. All modes of payment are treated as equal for rebate purposes by the insurer

A. On surrender of the policy in return for surrender value

B. When the premiums are not paid as and when due

C. When a policy is upgraded

D. When a policy is downgraded

A. Market value of assets is always taken by the insurer

B. In periodical valuation of assets and liabilities book value of assets is normally taken by the insurer

C. Discounted present value of the assets is taken by the insurer

D. Discounted future value of the assets is taken by the insurer

A. Moral Hazard is about the intention and post purchase behaviour of an assured in most cases

B. Proposal is the basis of contract between a person seeking insurance cover and the insurer

C. Insurers should view very seriously the conduct of the persons for life insurance cover whenever they seek profit by purchase of insurance

D. All of the above

A. Free look period enables the insured to return the policy within 30 days of receipt of the policy bond

B. If the policy is returned as above, no premium is refunded by the insurer

C. PMLA is not applicable to life insurance

D. All of the above

A. Material information is required by the insurer about a proposer for correctly estimating risk in his life for life cover purposes

B. All information as contained in the proposal is equally binding on the parties to a life insurance contract

C. Proposal is not always necessary from proposer’s point of view

D. IRDA has The proposal proposal form since 2013

A. A policy has three parts viz. Policy schedule, standard provisions & special policy provisions

B. A policy is the most important document evidencing the relationship between life assured and the insurance company

C. With issue of FPR further premiums are not required to be paid

D. Any interpretation of a complex provision of the policy in case of conflict should be in favour of the assured

A. Code of conduct is optional for a successful agent

B. Ethical standards may sometimes conflict with drive to do good volume of business

C. Persistency of policies is beyond the control of agents as well as the insurer

D. All of the above

A. A policy document has to be signed by a competent authority authorised by the company, but it need not be stamped as per Indian Stamp act

B. Stamping the document is compulsory but it may be signed by anyone in the insurer’s office

C. Policy itself need not be issued by the insurer

D. All of the above