Insurance MCQ daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.
These 20 Insurance MCQ’s covers General and Life Insurance insurance questions in detail.
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Q-1- The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result from?
- A tax rebate
- Charges refund
- A terminal bonus
- A frquency loading
Option 3 Terminal Bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity. Its value is not guaranteed and will be disclosed only at the time of policy maturity.
Q-2- The main role of an underwriter in a non-life insurance company is normally to
- negotiate with the industry regulator
- certify a loss when claims are submitted
- assess the acceptability of particular risks
- design the structure of the products to be offered
Option-3 assess the acceptability of particular risks
Q-3- Tina is a relatively cautious person. In insurance terms, this will normally increase the likelihood that she will
- require insurance cover
- require reinsurance cover
- be considered a below average insurance risk
- be considered an above average insurance risk
Option-1 require insurance cover
Q-4- What normally happens to the sum insured under a life insurance policy once the period of the lien expires?
- It reduces
- It increase
- It is temporarily suspended
- It is replaced by a newly policy
Option-2 The sum insured under a life insurance policy once the period of the lien expires it increases.
Q-5- Vaishali recently arranged a life insurance policy under which she is classed as the master policyholder. This addresses her role as
- A debtor
- A creditor
- An employee
- An employer
Option-4 Vaishali role as an employer.
Q-6- The need for investment advice from an insurance agent normally results from what overriding key factor?
- lack of Market knowledge
- shortage of available funds
- absence of any long-term goals
- inability to prioritise future financial needs
Option-1 lack of Market knowledge
Q-7- Which policy referring to policies that provide coverage only for the loss caused by the perils?
- All Risks
- All Perils
- Named Perils
- Specified Perils
Option-3 Named Perils policy provides coverage only for the loss caused by the perils.
Q-8- A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as _________
- Hacker Insurance
- Hospital Insurance
- Social Engineering
- Internet Insurance
Option-1 Hacker Insurance provides coverage for loss/damage of online hackers.
Q-9- Coverage against loss through stealing by individuals not in a position of trust is called _________
- Theft Insurance
- Group Insurance
- Marine Insurance
- Identity Insurance
Option-1 Coverage against loss through stealing by individuals not in a position of trust is called Theft Insurance. Theft-insurance contracts cover losses from burglary, robbery, and other theft.
Q-10- Which of the below losses are covered under keyman insurance?
- Property theft
- General Liability
- Losses caused due to errors and omission
- Losses related to the extended period when a key person is unable to work
Option-4 Keyman insurance protects from losses related to the extended period when a key person is unable to work.