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

31.
In keyman insurance policy the basis for issue of such a policy is

A. Income of the keyman

B. History of the business

C. Profitability of the business and the role of the keyman in that profitability

D. State of the national economy and rate of inflation

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32.
Which is incorrect of the following?

A. Being judgmental is the opposite of listening

B. Sometimes prospect’s objection to accepting the agent’s recommendation may arise out of the past experience of hurt ego and unfair dealings by some others connected with insurance

C. Genuine interest in the other person is always respecting him in social relationships as also in insurance dealings

D. Prospect should feel obliged to the agent for being enlightened on life insurance

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33.
Pick out the incorrect statement.

A. Life insurance is sold, not bought

B. Selling is neither a science nor an art

C. In prospecting for life insurance, members of a community association will be classified as a natural market

D. Loss assessment is not part of sales process

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34.
Insurance needed by a person can be determined by

A. Human Life Value method

B. Life Term proposition method

C. Future Life value method

D. Human Economic value method

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35.
State which of the following ones is a transactional product.

A. Bank Deposit

B. Life Insurance

C. Shares in stock market

D. Bonds and debentures

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36.
Term Policy is ideally suited for

A. One who needs periodical sums of money in his life?

B. One who has a high insurance budget

C. One who has a low insurance budget

D. One who looks for high returns

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37.
Which one of the below is not a case of annuity?

A. Payment of Rs.10, 000 received today last year on the same day and likely payment of a similar sum by the insurer next year

B. Electricity Bill

C. Car payments made by the loanee car owner

D. Periodical mortgage payments

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38.
State the correct statement out of the following ones.

A. Primary care means acute care to a patient in a hospital

B. It means extensive care provided to a patient in a acute setting

C. First point of contact for health care to a needy person

D. Care provided by experts to solve a medical problem faced by a patient

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39.
Mortgage Redemption Insurance is nothing but

A. It is a constant term insurance

B. It is an increasing term insurance

C. It is savings insurance like universal life insurance

D. Decreasing Term Insurance

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40.
State the incorrect statement of the following ones.

A. In a term insurance the benefits are fixed throughout the duration

B. In an MRI the insurance benefit on account of cover will decrease year after year

C. There is no material difference between a term insurance policy and an MRI as far as benefits are concerned

D. MRI is suitable for a loan sought from a bank as a mortgage cover

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Insurance MCQ Questions and Solutions with Explanations | Commerce

31. In keyman insurance policy the basis for issue of such a policy is

Answer & Solution

32. Which is incorrect of the following?

Answer & Solution

33. Pick out the incorrect statement.

Answer & Solution

34. Insurance needed by a person can be determined by

Answer & Solution

35. State which of the following ones is a transactional product.

Answer & Solution

36. Term Policy is ideally suited for

Answer & Solution

37. Which one of the below is not a case of annuity?

Answer & Solution

38. State the correct statement out of the following ones.

Answer & Solution

39. Mortgage Redemption Insurance is nothing but

Answer & Solution

40. State the incorrect statement of the following ones.

Answer & Solution

Read More Section(Insurance)

31.
In keyman insurance policy the basis for issue of such a policy is

32.
Which is incorrect of the following?

33.
Pick out the incorrect statement.

34.
Insurance needed by a person can be determined by

35.
State which of the following ones is a transactional product.

36.
Term Policy is ideally suited for

37.
Which one of the below is not a case of annuity?

38.
State the correct statement out of the following ones.

39.
Mortgage Redemption Insurance is nothing but

40.
State the incorrect statement of the following ones.