McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
Which one of the following comes under miscellaneous insurance? |
| A. | Marine Insurance |
| B. | Motor Insurance |
| C. | Fire Insurance |
| D. | Group Insurance |
| Answer» B. Motor Insurance | |
| 2. |
__________ policy matures on the assured death or on his attainment of a particular age whichever occurs earlier. |
| A. | Endowment. |
| B. | Money back. |
| C. | Joint life |
| D. | Single premium. |
| Answer» A. Endowment. | |
| 3. |
On the death of the bread-earner, two losses occur in the family-one is loss of human life and the other |
| A. | Earning power of family |
| B. | Loss of insurance |
| C. | Loss of investments |
| D. | Loss of bank deposits |
| Answer» A. Earning power of family | |
| 4. |
The principle of indemnity is applicable to _______ only. |
| A. | Life Insurance |
| B. | Personal accident insurance |
| C. | Proximate Cause |
| D. | Property insurance |
| Answer» D. Property insurance | |
| 5. |
Insurance is based on the principle of _______. |
| A. | co-operation. |
| B. | Democracy |
| C. | Equality |
| D. | welfare |
| Answer» A. co-operation. | |
| 6. |
______ are those terms, which are written on the policy. |
| A. | Express Warranties |
| B. | Implied Warranties |
| C. | Memorandum Warranties |
| D. | Valuation Clause |
| Answer» A. Express Warranties | |
| 7. |
Which of the following statements is true: Under a fire policy |
| A. | Insurance is a transfer of risk mechanism. |
| B. | Insurance gives physical protection to the assets. |
| C. | Statement A |
| D. | Statement B |
| Answer» A. Insurance is a transfer of risk mechanism. | |
| 8. |
Which of the following statements is correct? |
| A. | One of the methods of risk retention is by way of voluntary excess or deductible available under the policy. |
| B. | Another method of retention of risk is to absorb small losses as normal operating expenses of business. |
| C. | Statement A |
| D. | Statement B |
| Answer» C. Statement A | |
| 9. |
Which of the following types of loss exposures are best met by the use of avoidance? |
| A. | low-frequency, low-severity |
| B. | low-frequency, high-severity |
| C. | high-frequency, low-severity |
| D. | high-frequency, high-severity |
| Answer» D. high-frequency, high-severity | |
| 10. |
Consideration on the part of the life insured in respect of a life insurance contract is |
| A. | A promise to take a new policy |
| B. | The insured’s promise to pay the premium under the policy. |
| C. | The payment made towards premium by the insured. |
| D. | Proposal completed and signed by the person. |
| Answer» B. The insured’s promise to pay the premium under the policy. | |
| 11. |
The policy holder’s duty to disclose material fact lies at the time of |
| A. | Taking a policy |
| B. | Revival of policy |
| C. | Reinstatement of surrendered policy |
| D. | All of the above |
| Answer» D. All of the above | |
| 12. |
Which of the following is an evidence of insurance contract? |
| A. | Policy of insurance |
| B. | Payment of premium |
| C. | Cover note |
| D. | Acceptance of proposal |
| Answer» A. Policy of insurance | |
| 13. |
Which of the following statements is correct? |
| A. | People do not see the need for life insurance as top priority. |
| B. | People hesitate to buy life insurance because they prefer to enjoy the present. |
| C. | Both the statements are correct. |
| D. | Both the statements are wrong. |
| Answer» C. Both the statements are correct. | |
| 14. |
The principle of utmost good faith does not apply to : |
| A. | Facts of common knowledge |
| B. | Facts of Law |
| C. | Facts which are not material for underwriting |
| D. | All the three kinds of facts mentioned above. |
| Answer» D. All the three kinds of facts mentioned above. | |
| 15. |
Which of the statement is correct? A. Existence of the subject-matter is an express condition. B. There are no implied conditions in insurance contracts |
| A. | A. is correct |
| B. | B. is correct |
| C. | Neither is correct |
| D. | Both the correct |
| Answer» C. Neither is correct | |
| 16. |
The clause which sets out the essence of the contract is |
| A. | The Preamble |
| B. | Recital Clause |
| C. | Conditions |
| D. | Operative Clause |
| Answer» D. Operative Clause | |
| 17. |
Endorsement can be used in a policy giving effect to |
| A. | Renewal |
| B. | Change in premium |
| C. | Change in subject-matter of insurance |
| D. | All of the above |
| Answer» D. All of the above | |
| 18. |
Policy stamp needs to be affixed on the |
| A. | Endorsement |
| B. | Cover note |
| C. | Policy |
| D. | All of the above |
| Answer» C. Policy | |
| 19. |
Cover note can be issued by |
| A. | Agents |
| B. | Development officers |
| C. | Insurers |
| D. | All of the above, depending on company guidelines |
| Answer» D. All of the above, depending on company guidelines | |
| 20. |
What is the minimum age for a person to effect a contract of insurance? |
| A. | 25 years |
| B. | 18 years |
| C. | 12 years |
| D. | 20 years |
| Answer» B. 18 years | |
| 21. |
Insurable Interest is defined by: |
| A. | The Insurance Act |
| B. | The Contracts Act |
| C. | By IRDA |
| D. | Not defined in any written law |
| Answer» D. Not defined in any written law | |
| 22. |
Which of the following is true? A. Policy form is a legal document. B. The warranties inserted in a policy safeguard the interest of the insured. |
| A. | A is True |
| B. | B is True |
| C. | Both are true |
| D. | Neither is true |
| Answer» B. B is True | |
| 23. |
In case of life insurance, insurable insurance should not exist? |
| A. | At the inception of the policy. |
| B. | At the time of a claim. |
| C. | At the time of every renewal premium payment. |
| D. | All the above occasions. |
| Answer» A. At the inception of the policy. | |
| 24. |
Notification of Alterations in Risk is a condition |
| A. | Precedent to liability |
| B. | Subsequent to liability |
| C. | Precedent to the contract |
| D. | Subsequent to the contract |
| Answer» A. Precedent to liability | |
| 25. |
A person’s insurable interest in his own life is: |
| A. | Unlimited |
| B. | Limited |
| C. | 10 times the husband’s salary |
| D. | None of the above |
| Answer» A. Unlimited | |
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