Insurance MCQ Daily-22

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- A Mortgage clause

  1. gives the same protection as a loss payable clause.
  2. is an agreement between the mortgage and the insured.
  3. bestows rights and obligations on mortgages and insured’s.
  4. entitles mortgages to payment even when insured have prejudiced their own rights under the policy.

Option 4 A mortgage clause entitles mortgages to payment even when insured have prejudiced their own rights under the policy.

Q-2- Very large risks are often insured by means of

  1. endorsements
  2. extension policies
  3. prescription policies
  4. subscription policies

Option-4 Very large risks are often insured by means of subscription policies.

Q-3- The failure to disclose a fact which is important for making an underwriting or rating decision is

  1. concealment
  2. a material fact
  3. utmost good faith
  4. misrepresentation

Option-1 The failure to disclose a fact which is important for making an underwriting or rating decision is called Concealment.

Q-4- Temporary insurance

  1. cannot be cancelled
  2. maybe cancelled verbally in all cases
  3. must me cancelled when the policy is issued
  4. must be cancelled in the same way a policy of similar type would be cancelled

Option-4 Temporary insurance must be cancelled in the same way a policy of similar type would be cancelled.

Q-5- When a loss occurs

  1. only the insured can legally give notice
  2. the agent of the insured must give notice
  3. the insurance agent and the agent of the insured are the same
  4. any person to whom any part of the insurable interest is payable may give notice

Option-4 When a loss occurs, any person to whom any part of the insurance interest is payable may give notice.

Q-6- The following damage is covered under all perils policy

  1. vandalism of a vehicle.
  2. rusting of the vehicle body.
  3. radioactive contamination.
  4. damage cause to the vehicle while the driver was under the influence of drugs.

Option-1 Vandalism of a vehicle is covered under all perils policy.

Q-7- After being involved in an accident where injuries occurred, an insured must

  1. contact a lawyer immediately.
  2. try to settle amicably with the injured parties.
  3. comply with all requirements found in the policy.
  4. not do anything until he knows if there will be a claim.

Option-3 An insured must comply with all requirements found in the policy.

Q-8- Which one of these statements is TRUE?

  1. All drivers of recreational vehicles must be licensed.
  2. Recreational vehicles are not permitted to cross highways.
  3. Motorized snow vehicles are automatically covered under an auto policy. No endorsements are needed at any time.
  4. Coverage under an auto policy is excluded by endorsement if an all-terrain vehicle is used in the water.

Option-4 Coverage under an auto policy is excluded by endorsement if an all-terrain vehicle is used in the water.

Q-9- _______ is the agreement enforceable at law, which sets out in detail the arrangements between insured and insurer concerning premiums.

  1. Notice
  2. Contract
  3. Survey report
  4. Policy document

Option-1 Contract is the agreement enforceable at law, which sets out in detail the arrangements between insured and insurer concerning premiums.

Q-10- _______ represent one insurer and also assist in arranging insurance contracts between applications and insurers.

  1. Agents
  2. Surveyors
  3. Undewriters
  4. Loss assessors

Option-1 Agents represent one insurer and also assist in arranging insurance contracts between applications and insurers.

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