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- Which of the following statements is incorrect with regards to decreasing term assurance?
- Premium remains leveled throughout the term
- Premium amount decreases with term of coverage
- Death benefit amount decreases with term of coverage
- Mortgage redemption plans are an example of decreasing term assurance plans
Option 2 Premium amount increases with the term of coverage.
Q-2- Which of the following is correct?
- Double accident benefit is a free item in a life policy
- Permanent Disability, like DAB, is also a free benefit and not chargeable
- Extra premium for health and extra premium for extra benefits are identical
- Extra benefits are allowed by the insurer in a life policy on payment of an extra premium
Option-4 Extra benefits are allowed by the insurer in a life policy on payment of an extra premium and extra premium for health is different from extra premium for extra benefits.
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- Which of the following factors are taken into account for financial underwriting?
- Income
- Occupation
- Lifestyles/habits
- All above
Option-4Income, occupation, lifestyle, habits and many other factors play an important role in financial underwriting.
Q-5- Health plus life combo products would mean a combination of
- Health insurance from a non-life company and life cover from a life insurance company
- Health insurance from a standalone health company and life cover from a life insurance company
- Both above
- None of above
Option-3 Health plus life combo products would mean a combination of health insurance from a non-life company and life cover from a life insurance company and health insurance from a standalone health company and life cover from a life insurance company.
Q-6- Which of the following forms is not required for settlement of a death claim?
- Death Certificate
- Physician Certificate
- Declaration of good health
- Certificate of cremation/burial
Option-3 Declaration of good health is not required to be submitted.
Q-7- What is th proces for lodge a complaint to Insurance Ombudsman?
- The complaint is to be made orally over the phone
- The complaint is to be made in writing in prescribed format
- The complaint is to be made orally in case of a face to face manner
- The complaint is to be made through newspaper advertisement
Option-2The complaint is to be made in writing. Send a written complaint, with supporting documents, to the insurer’s grievance redressal officer, and get an acknowledgement.
Q-8- Which of the following statements is correct with regard to the territorial jurisdiction of the Insurance Ombudsman?
- Insurance Ombudsman has state jurisdiction
- Insurance Ombudsman has state jurisdiction
- Insurance Ombudsman has direct jurisdiction
- Insurance Ombudsman operates only within the specified territorial limits
Option-4 The Ombudsman functions within a set geographical jurisdiction and can entertain disputes relating to partial/total repudiation of claims, delay in settlement of claims, any dispute on the legal construction of the policies in so far as such disputes relate to claims, disputes regarding premium paid or payable in terms of the policy and non-issuance of insurance documents.
Q-9- Which of the following will be the most appropriate option for an aggrieved customer to lodge an insurance policy related complaint?
- Police
- District Court
- Supreme Court
- Insurance Ombudsman
Option-4 Insurance Ombudsman will be the most appropriate option for an aggrieved customer to lodge an insurance policy related complaint. The Insurance Ombudsman will not accept your complaint until you have first filed a complaint with IRDA.
Q-10- Which of the following statements is incorrect?
- Moral hazard is not easily assessable unlike physical risk of the proposer
- Standard and non-standard age proofs are not mutually interchangeable
- Life Insurance Company will return the entire premium under free look provisions
- Money laundering is an illegal practice of bringing money into nation’s economy by hiding its source and the true identity of the person involved
Option-3 A free look period is where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.If one had bought a policy and realise don’t want it, then can return it and get a refund.