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

71.
‘Clause’ under a life insurance policy means –

A. Risk not covered

B. Risk covered

C. Surrender

D. Loan facility

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72.
What is the standard length of a grace period under a life insurance policy?

A. One month not more than 30 days

B. One month not less than 31 days

C. One month not more than 31 days

D. One month not less than 30 days

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73.
When a policy is said to lapse?

A. If premiums are paid within grace period

B. If premiums are paid after grace period

C. If premiums are not paid after grace period

D. If premiums are not paid within grace period

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74.
If the policyholder dies within grace period –

A. Claim will be rejected

B. Claim will be paid subject to policy conditions

C. Claim is payable after deducting the prem

D. None of the above

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75.
Revival of a policy is not a _________ right of the insured.

A. Conditional

B. Unconditional

C. Legal

D. Fundamental

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76.
Revival would be subject to –

A. No increase in risk cover

B. Creation of reserve

C. Satisfactory evidence of insurability

D. All of the above

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77.
Satisfactory evidence of insurability would mean –

A. Satisfactory premium payment

B. Satisfactory evidence of health

C. Satisfactory proposal form

D. Satisfactory terms and conditions

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78.
If a policy is lapsed for a very short period of time only, what would be the requirement:-

A. Medical Report

B. Medical Underwriting

C. Certificate of good health

D. None of the above

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79.
When a medical report would be called at the time of revival?

A. When the policy is in a lapsed condition for a long period

B. If health problem is present

C. If the sum assured is high

D. All of the above

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80.
It would be advantageous to Revive a lapsed policy rather than taking a new policy. Most apt reason is -

A. Fresh conditions may be imposed under a new policy

B. Policyholder may not get the same policy benefits

C. That policy may longer be available for sale

D. Premium under a new policy would be more based on his latest age

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Insurance MCQ Questions and Solutions with Explanations | Commerce

71. ‘Clause’ under a life insurance policy means –

Answer & Solution

72. What is the standard length of a grace period under a life insurance policy?

Answer & Solution

73. When a policy is said to lapse?

Answer & Solution

74. If the policyholder dies within grace period –

Answer & Solution

75. Revival of a policy is not a _________ right of the insured.

Answer & Solution

76. Revival would be subject to –

Answer & Solution

77. Satisfactory evidence of insurability would mean –

Answer & Solution

78. If a policy is lapsed for a very short period of time only, what would be the requirement:-

Answer & Solution

79. When a medical report would be called at the time of revival?

Answer & Solution

80. It would be advantageous to Revive a lapsed policy rather than taking a new policy. Most apt reason is -

Answer & Solution

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71.
‘Clause’ under a life insurance policy means –

72.
What is the standard length of a grace period under a life insurance policy?

73.
When a policy is said to lapse?

74.
If the policyholder dies within grace period –

75.
Revival of a policy is not a _________ right of the insured.

76.
Revival would be subject to –

77.
Satisfactory evidence of insurability would mean –

78.
If a policy is lapsed for a very short period of time only, what would be the requirement:-

79.
When a medical report would be called at the time of revival?

80.
It would be advantageous to Revive a lapsed policy rather than taking a new policy. Most apt reason is -