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- VIjay pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income?
- Vijay only
- VIjay and his wife only
- Vijay, his wife and his oldest child
- Vijay, his wife and both his children
Option 4 VIjay pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for Yash, his wife and both his children will qualify as deductible from vijay’s taxable income.
Q-2- Apart from the salary level, what another key feature of Rahul’s job is likely to have a major impact on the level of his pension, life insurance, and health insurance needs?
- Whether the job is office or field-based
- Whether the job is manual or non-manual
- The normal retirement age in relation to the job
- Whether the job is in the public or private sector
Option-4 Whether the job is in the public or private sector
Q-3- Insurance is legitimate
- When an adverse happening is likely
- When an adverse happening is certain
- When an adverse happening is unlikely
- In all the above three situations
Option-1 Insurance is legitimate when an adverse happening is likely toh happen.
Q-4- Insurance benefits replace
- All physical losses, in full
- All physical losses, partly
- All monetary losses, in full
- The monetary losses, but only to some extent
Option-4 Insurance benefits replace the monetary losses, but only to some extent.
Q-5- Which of the following statements is correct?
- Insurance is a charity
- Insurance is a kind of investment
- Insurance is nothing but a gamble
- Insurance is risk transfer through risk pooling
Option-4 Risk pooling refers to the spreading of financial risks evenly among a large number of contributors. It diversify risks among people who make contributions in investment policies. Investment made by people are invested in other profitable ventures and returns are raised from the profitable ventures which are distributed to insurance policies holders in order to idemnify them in case of any loss occured to them.
Q-6- Insurability of women is governed by
- Need for insurance
- Capacity to pay premiums
- Both above
- None of the above
Option-3 Insurability of women is governed by need for insurance and capacity to pay premiums. Thus, insurance companies may decide to grant full insurance only to those who have earned income of their own and may impose limits on other categories of women.
Q-7- Which of the following is not correct with regards to insurable interest?
- Friends taking out insurance on one another
- Father taking out insurance policy on his son
- Employer taking out insurance on employees
- Employer taking out insurance on employees
Option-1 Friends taking out insurance on one another is not correct with regards to insurable interest.
Q-8- Which of the following options is correct?
- There is no upper limit to sum assured in a health insurance policy
- Premium paid towards health cover earns income tax rebate under section 80D of the Income Tax Act
- Premium paid for a health cover does not qualify for tax benefit under any provision of the Income Tax Act
- Premium paid by a client for health cover enjoys income tax deduction under section 80C of the Income Tax Act
Option-2 Section 80D of the Income Tax Act deals with rebates. Tax Benefits of Health Insurance Under Section 80D. Health insurance premium paid for self, spouse, dependent children or parents qualifies for tax deduction up to Rs.25,000. This limit has been increased from Rs.15,000 from the previous year to Rs.25,000.
Q-9- State the incorrect statement of the below ones
- Keyman can provide compensation to protect profits
- Keyman life policy proceeds can be set off against lost income from lost business
- Premium for an MRP as a collateral for a bank loan need not be paid as the bank is expected to pay the same
- Keyman life policy can compensate for losses incurred due to stoppage of work, following the absence of the keyman from work
Option-3 Keyman insurance helps a business recover from the loss of its valuable assets viz. the persons who run it and/or own it. Individual talents are becoming critical to the success of many companies and employees are also becoming an important factor in investors’ valuation of the entities. Every business has at least a few very valuable employees who contribute significantly to the running and growth of the company.
Q-10- The _________ the premium paid by you towards your life insurance, the _________ will be the compensation paid to the beneficiary in the event of your death.
- Lower, higher
- Higher, lower
- Higher, higher
- Faster, slower
Option-3 The higher the premium paid by you towards your life insurance, the higher will be the compensation paid to the beneficiary in the event of your death.