Insurance MCQ Daily-01

Q-1- Which of the following is/ are important activities of an organization’s Accounts Department?

  1. Processing bills
  2. Investments of funds
  3. Keeping control on cash
  4. Reconciling bank statements
  5. All of the above

Option-5 All of the above

Q-2- Why do a person prefer to buy insurance policies through agents?

  1. Agents have to earn their commissions
  2. Agents have to meet their marketing targets
  3. People can decide which policy is best for them
  4. The benefits of insurance policies are simple and clear to all
  5. Many people require personalized guidance for selecting the right coverage

Option-5 Many people require right guidance on desired insurance coverage.

Q-3- Compared to the premium for a Whole Life plan, the premium for an Endowment plan will be _______ for the same age

  1. less
  2. half
  3. more
  4. double

Option-3 More

Q-4- A nomination can be made only in favour of ________

  1. a bank
  2. any individual
  3. spouse and minor children
  4. parents, spouse and children
  5. spouse and children with guardian

Option-2 A nomination can be made on favour of any indivudual.

Q-5- The term SA as commonly used in life insurance

  1. Stamp Act
  2. Sum Assured
  3. Survivor’s Annuity
  4. Surrender of Assurance
  5. Supplementary Assurance

Option-2 SA in life insurance policies means SUM ASSURED

Q-6- The term OR as commonly used in life insurance

  1. Ordinary Rates
  2. Once Renewed
  3. Oral Rehydration
  4. Ordinary Renewal
  5. Ombubsman’s Assurance

Option-1 OR in life insurance means ORDINARY RATES

Q-7- Which statement is incorrect from below statements

  1. Marketing department has to monitor business inflow
  2. Actuarial department is responsible for settling death claims
  3. Marketing department has to monitor performance of agents
  4. Underwriting department has to assess risk and determine premium
  5. Accounts department has to monitor cash flow from subordinate offices

Option-2 The Actuarial department is NOT responsible for settling Death claims.

Q-8- Which of the following terms is NOT MATCHING with other four in the context of insurable interest in life insurance?

  1. Surety
  2. Debtor
  3. Creditor
  4. Employer
  5. Employee

Option-2 Debtor

Q-9- Which of the following terms are NOT MATCHING with the other four in the context of death claims in life insurance?

  1. Early claims
  2. Foreclosure
  3. Non-early claims
  4. Deeds of Assignment
  5. Claimant’s statement

Option-2 Foreclosure

Q-10-As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of

  1. Age and sex
  2. Age and income
  3. Income and size of family
  4. Age and number of dependents
  5. Income and number of dependents

Option-2 Age and Income are two main factors on which compensation are paid to victims of fatal injuries.

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