Insurance MCQ daily is very useful to all Insurance aspirants who want to make Insurance a successful career.
Insurance Daily MCQ is very helpful to all those who are preparing for various competitive exams. This MCQ will certainly add value to their Insurance learning. Practice it daily with us and get a competitive advantage over your competitors.
These 20 Insurance MCQ’s cover Life Insurance, Burglary insurance, and new terms like HLV, etc.
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Q-1- Mortality Charges would be at least in which of the following
- A person in the age group of 21-25 years
- A person in the age group of 30-35 years
- A person in the age group of 40-45 years
- A person in the age group of 45-50 years
Option-1 In life insurance policy, the insurer levies the charges for the insurance protection upon death and to cover certain other expenses. It is known as Mortality charge. It is the actual cost of insurance by the life insurance company.
Q-2- Mortality charges
- Increase with increase in age
- Are constant throughout the policy term
- Are not affected by the health of prospects
- Will be the same for all males of 25 years of age
Option-1 Mortality charges increases with increase in age.
Q-3-Level premium is where
- The policy generates surplus in initial years
- The premium amount doesn”t increase with age
- The law of average is applied to calculate the premium payable
- All are correct
Option-4 All are correct
Q-4- Level premium is
- is always a costlier proposition for the policyholder’s in general
- Not favourable for the policyholder’s who take good care of their health
- both 1 and 2 are correct
- both 1 and 2 are incorrect
Option-3 Both 1 and 2 are correct
Q-5- Level premium have the following components
- Protection element
- Cash value element
- Residual value element
- 1 and 3
Option-4 Level premium have protection and residual value element.
Q-6- The premium which remains constant throughout the term of the policy is called
- Level premium
- Fixed premium
- Flexible premium
- Constant Premium
Option-1 Premium remains constant throughout the policy term is called Level premium.
Q-7- A policywith no cash value element is called
- Term policy
- Savings policy
- Protection policy
- None of the above
Option-1 A policy without cash value element is called Term policy.
Q-8- ‘Reserve’ in Life Insurance policies is defined as
- Amount kept aside to cater to the expenses
- Premium collected in the early years of the policy
- Life insurance cover payable to the policyholder(s)
- Amount kept aside to pay bonus under the policies
Option-4 ‘Reserves’ are the premium collected in the early years of policy.
Q-9- ‘Life fund’ in life insurance policies refer to
- Fund kept aside to pay the claims
- Excess of the premiums collected under the policies
- Fund approtioned to meet the expenses of the insurance company
- The amount formed out of the interest earned on the amount invested
Option-2 Life fund is refers to excess of premiums collected under the policies.
Q-10- Out of following which is not a risk associated with Life insurance
- Dying to early
- Living too long