Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Policy reserves

B. Mortality

C. Expenses

D. All of the above

A. Excess value of assets over liabilities

B. When turnover of the insurer is high

C. Excess value of liabilities over assets

D. Excess of liabilities

A. Bonus is not allowed on surrender of a policy

B. In compound reversionary bonus it is a percentage of basic benefit and already attached bonus

C. Terminal bonus and compound bonus are one and the same

D. Persistence bonus is allowed by the insurer at its discretion in certain cases

A. Horoscope like a certificate of baptism is a standard age proof

B. Horoscope like certified extract from a family bible as to the date of birth is a standard age proof

C. Horoscope like a marriage certificate issued by a Roman catholic church is a standard age proof

D. Horoscope is a non-standard proof of age for life insurance purposes

A. Agent’s report is not always compulsory

B. Agent’s report should contain details of proposer’s health, habits, occupation, income, and family

C. An agent is a primary underwriter from the insurer’s point of view

D. Prospectus is a legal document

A. In the event of loss of policy document, no fresh proposal needed

B. The insurer will in such an event issue a duplicate policy without making any change in the contract

C. No fresh underwriting is involved for issue of a duplicate policy

D. The assured has to approach a competent court of law and obtain an order directing the insurer to issue a duplicate policy

A. Amount of premium need not be shown; only sum assured is to be shown

B. There is no provision for name of the nominee in the policy

C. Mode of payment of claim is also shown in the policy

D. Date of birth of the assured has to be shown in the policy

A. First Pregnancy clause

B. General provisions

C. Policy schedule

D. Standard provisions

A. Loan is a privilege available only in some policies

B. If interest on loan is not paid, it becomes part of the loan

C. Nomination can be made by the proposer in the proposal itself

D. All of the above

A. Extension of premium paying period is normally allowed as an alteration in a policy

B. Increase in sum assured will be welcomed as a preferred alteration in a policy

C. Splitting of a policy into two or more is allowed as an alteration

D. Notice is not always necessary in an assignment to be given by the assured to the insurer