Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Ombudsman is appointed by the central Govt under powers of the Insurance Act’38 and under Redressal of Public Grievance Rules 1998

B. The recommendations of the Ombudsman are always binding on the insured

C. The Ombudsman can act as a mediator by mutual agreement between the insurer and the insured

D. If mediated, the decision of the Ombudsman is final whether to accept or reject the compliant

A. By transferring risks to an insurer one can be careless about one’s assets

B. If there is a loss it can lead to payment of money by the insurer

C. Potential loss to assets can be ignored

D. If assets are insured the owner of such assets can have comfort of peace of mind and look after his business without worries

A. Assets are protected by insurance

B. Insurance prevents loss to assets

C. Insurance compensates for the loss of the value of assets

D. Probabilities of loss are considerably reduced by insurance

A. In insurance subsidy plays a part in fixing premium

B. Losses are shared by subsidy

C. A few persons have to share the loss of many

D. Losses of a few persons are shared by many persons thus reducing the burden of contribution to loss compensation

A. Endowment assurance has no saving element

B. Whole Life Plan has no saving element at all

C. Term Insurance has little or no saving element

D. Money Back plan has no savings element

A. Life Insurance policies are contracts of indemnity

B. Life insurance contracts are valued contracts and not contracts of indemnity

C. In Non-Life contacts there is no assurance

D. There is no certainty of risk occurrence in non-Life contracts

A. Reduced returns on account of inflation

B. Low accumulation in earlier years

C. Lower yields

D. Secure and safe investment

A. Not disclosing medical facts and information in the proposal

B. Not revealing all material facts known only to the proposer in the proposal

C. Paying premium in time and as and when it is due

D. Fully disclosing all material facts about the proposed by him in the proposal

A. Retention of risk and reduced consumption

B. Gifting and accumulation

C. Spending and accumulation

D. Postponement of consumption and parting with liquidity

A. Shares

B. Bonds

C. Life insurance

D. Bank Deposits