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

41.
If Assets are undervalued it would result in –

A. More surplus

B. Less surplus

C. More or less surplus

D. No effect on surplus

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42.
If liabilities are overvalued, it would result in –

A. More bonuses to the policyholders

B. Less bonuses to the present policyholders

C. More bonuses to the future policyholders

D. Less bonuses to the future policyholders

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43.
If Assets/Liabilities are liberally valued, it would benefit –

A. Current policyholders

B. Future policyholders

C. Neither/nor current/future policyholders

D. No impact at all on policyholder community

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44.
Free assets of a company are –

A. Distributed bonuses

B. Unallocated surpluses

C. Dividends

D. Encumbered assets

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45.
An insurance company needs free assets for –

A. Financing new business

B. Generating more competitive returns

C. Greater leverage in investment

D. All of the above

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46.
In respect of Bonuses, which of the following is incorrect?

A. Bonuses once declared, get attached to the policy and can’t be taken away

B. Bonuses form part of liability of a company

C. Premiums need not have been paid for a specified no. of years

D. All of the above

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47.
Which is a bonus?

A. Simple reversionary bonus

B. Compound reversionary bonus

C. Terminal bonus

D. Any of the above

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48.
Terminal Bonus would _________ with the duration/term of the policy.

A. Increase

B. Decrease

C. Either increase/decrease

D. Bear no connection

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49.
Prospectus is a document which is _________

A. Basis of the contract

B. Contract

C. Evidence of contract

D. Providing details about product

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50.
Which is not provided in a Prospectus?

A. Terms & conditions

B. Scope of benefits

C. Documents required for claim

D. Entitlements

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Insurance MCQ Questions and Solutions with Explanations | Commerce

41. If Assets are undervalued it would result in –

Answer & Solution

42. If liabilities are overvalued, it would result in –

Answer & Solution

43. If Assets/Liabilities are liberally valued, it would benefit –

Answer & Solution

44. Free assets of a company are –

Answer & Solution

45. An insurance company needs free assets for –

Answer & Solution

46. In respect of Bonuses, which of the following is incorrect?

Answer & Solution

47. Which is a bonus?

Answer & Solution

48. Terminal Bonus would _________ with the duration/term of the policy.

Answer & Solution

49. Prospectus is a document which is _________

Answer & Solution

50. Which is not provided in a Prospectus?

Answer & Solution

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41.
If Assets are undervalued it would result in –

42.
If liabilities are overvalued, it would result in –

43.
If Assets/Liabilities are liberally valued, it would benefit –

44.
Free assets of a company are –

45.
An insurance company needs free assets for –

46.
In respect of Bonuses, which of the following is incorrect?

47.
Which is a bonus?

48.
Terminal Bonus would _________ with the duration/term of the policy.

49.
Prospectus is a document which is _________

50.
Which is not provided in a Prospectus?