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Insurance MCQ Daily-21

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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.

The InsuranceGK team is committed to making available all possible multiple-choice questions from various sources to visitors of this portal.

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Q-1- In Faculttive reinsurance?

  1. The reinsurer is obligated to accept all loss exposures underwritten by the primary insurer.
  2. The primary insurer must negotiate a separate agreement for each loss exposure it wants to reinsure.
  3. The reinsurer agrees in advance to accept a set proportion of all loss exposures underwritten by the primary insurer.
  4. Both the primary insurer and the reinsurer may cancel the contract at any time with sufficient notice.
  5. Reinsurance protection continues as long as the primary insurer renews the insured’s coverage.

Option 2 Under Facultative primary insurer must negotiate a separate agreement for each loss exposure it wants to reinsure.

Q-2- The most widely used general liability insurance form is the Commercial General Liability (CGL) policy. Which of the following statements about the CGL are true?

  1. It can be written to cover the insured’s legal liability arising from premises and operations.
  2. It can be written to cover the insured’s legal liability arising from products and completed operations.
  3. It can be included in a Commercial Package Policy that provides coverage for both property and liability losses.
  4. All of above

Option-4 A Comprehensive Commercial General Liability(CGL) policy cover all of the above.

Q-3- Which of the following are paid by the Commercial General Liability form’s Coverage C i.e Medical Payments?

  1. Only medical expenses for which the insured is legally liable.
  2. Medical expenses arising from injuries resulting from an accident occurring on the insured’s premises.
  3. Medical expenses from injuries arising out of the insured’s completed operations.
  4. All of above

Option-4 All above are true under CGL coverage C of Medical payments.

Q-4- Select the coverage of supplementary payments under CGL Coverages A and Coverage B

  1. Such payments are used to pay for court costs.
  2. Such payments are in addition to the policy limits.
  3. Such payments are used to pay for prejudgment interest on amounts awarded to the plaintiff.
  4. All of above

Option-4 All above are true.

Q-5- What is the contestable period in insurance policy?

  1. time period taken by insurers for investigate on claim.
  2. time period taken by insurers for pay the claim documents.
  3. time period taken by insurers for manage the claim documents.
  4. time period taken by insurers for modify policy terms & conditions.

Option-1 ‘Contestable period’ is usually 1 or 2 years, during which the insurance company holds all the right to investigate the policy and decide whether to pay or not to pay to the insured.

Q-6- What is Revocable beneficiary means?

  1. right to the policy holder to change the beneficiary name without the consent of the named beneficiary.
  2. right to the policy holder to remove the beneficiary name without the consent of the named beneficiary.
  3. right to the policy holder to add more than one beneficiary name without the consent of the named beneficiary.
  4. None of above

Option-1 ‘Revocable beneficiary’ designation gives right to the policy holder to change the beneficiary name without the consent of the named beneficiary.

Q-7- What is No claim bonus(NCB) in vehicle insurance?

  1. bonus given by insurer at time of claim
  2. bonus in form of increased IDV of vehicle
  3. a benefit for not claiming insurance during the preceding year
  4. cash incentive offered by Insurance company in case of No claim on vehicle

Option-3 No claim bonus is a benefit for those who have not claimed insurance during the preceding year of cover. This will lower the premium on the following year.

Q-8- How No claim bonus(NCB) is given to insured?

  1. in form of discount in Premium
  2. in form of increase claim value
  3. in form of increase IDV of vehicle
  4. in form of settling of not admissible claim

Option-1 No claim bonus is a benefit for those who have not claimed insurance during the preceding year of cover. This will lower the premium on the following year.

Q-9- No Claim Bonus can not be more than _____ in a policy.

  1. 30%
  2. 40%
  3. 50%
  4. 60%

Option-3 No Claim bonus can not be more than 50% in a policy.

Q-10- In any Insurance policy, declaration page state the declaration of the

  1. Insured
  2. Insurer
  3. Third party
  4. All above

Option-1 ‘Declaration page’ in insurance policy, bears all the information of the policy holder like name, address, vehicle information, type of coverage and loss payee information.

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