McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 51. |
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 | |
| 52. |
__________ 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. | |
| 53. |
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 | |
| 54. |
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 | |
| 55. |
Insurance is based on the principle of _______. |
| A. | co-operation. |
| B. | Democracy |
| C. | Equality |
| D. | welfare |
| Answer» A. co-operation. | |
| 56. |
______ 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 | |
| 57. |
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. | |
| 58. |
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 | |
| 59. |
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 | |
| 60. |
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. | |
| 61. |
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 | |
| 62. |
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 | |
| 63. |
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. | |
| 64. |
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. | |
| 65. |
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 | |
| 66. |
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 | |
| 67. |
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 | |
| 68. |
Policy stamp needs to be affixed on the |
| A. | Endorsement |
| B. | Cover note |
| C. | Policy |
| D. | All of the above |
| Answer» C. Policy | |
| 69. |
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 | |
| 70. |
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 | |
| 71. |
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 | |
| 72. |
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 | |
| 73. |
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. | |
| 74. |
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 | |
| 75. |
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 | |
| 76. |
Occupation is important for risk classification because of: |
| A. | Income earned by individual |
| B. | Tension, stress and worries given by workplace |
| C. | damage caused by pollution at work place |
| D. | both b and c |
| Answer» D. both b and c | |
| 77. |
A complete proposal form contains the information about |
| A. | Moral hazard |
| B. | Physical hazard |
| C. | Personal history of proposer and identity of the property insurance |
| D. | All of the above |
| Answer» B. Physical hazard | |
| 78. |
Valuation in life insurance means |
| A. | The process of arriving at the profit of a life insurance company |
| B. | The process of determining the net premium for a life insurance policy |
| C. | The process of arriving at the bonus in a life insurance company |
| D. | The process by which the value of all the existing policies is ascertained in a life insurance company. |
| Answer» D. The process by which the value of all the existing policies is ascertained in a life insurance company. | |
| 79. |
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 | |
| 80. |
Fire Insurance is based on the principle of ? |
| A. | Utmost good faith |
| B. | Insurable interest |
| C. | Indemnity |
| D. | Co-operation |
| Answer» C. Indemnity | |
| 81. |
Which is the consequential loss in the fire insurance? |
| A. | loss of profit on account of fire |
| B. | property damaged by matter used for extinguishing fire |
| C. | loss due to collapse of walls at the time of fire. |
| D. | none |
| Answer» A. loss of profit on account of fire | |
| 82. |
Fire insurance is a personal contract because |
| A. | it is a contract of utmost good faith |
| B. | it is a contract of insurable interest |
| C. | the contract does not insure the safety of the property but only the insured from pecuniary loss due to fire |
| D. | none |
| Answer» C. the contract does not insure the safety of the property but only the insured from pecuniary loss due to fire | |
| 83. |
Which of the statements is correct? Under a fire policy A. Insurance is a transfer of risk mechanism. B. Insurance gives physical protection to assets. |
| A. | Statement A. is correct |
| B. | Statement B. is correct |
| C. | Both are correct |
| D. | Neither is correct |
| Answer» B. Statement B. is correct | |
| 84. |
Which of the following is an accidental loss by fire? |
| A. | loss of profit on account of fire |
| B. | loss on account of delay |
| C. | Damage caused by a fire brigade in carrying out its fire fighting operation. |
| D. | Loss of market |
| Answer» B. loss on account of delay | |
| 85. |
The major law governing marine insurance in India is |
| A. | English Marine Insurance Act, 1906 |
| B. | Marine Insurance Act, 1963 |
| C. | IRDA Act, 1999 |
| D. | General Insurance Nationalisation Act, 1972 |
| Answer» C. IRDA Act, 1999 | |
| 86. |
Can a marine policy be assigned? |
| A. | Can be assigned before the loss |
| B. | Can be assigned after the loss |
| C. | cannot be assigned |
| D. | both a and b |
| Answer» C. cannot be assigned | |
| 87. |
Constructive total loss in marine insurance means |
| A. | same as total loss |
| B. | a partial loss |
| C. | the loss caused is so huge that the cost of repairs would exceed the actual amount, so it is adjudged as a total loss |
| D. | a loss which is not covered |
| Answer» A. same as total loss | |
| 88. |
Group insurance is ideally suited for covering |
| A. | Affluent persons in the society |
| B. | Weaker sections of the society |
| C. | Employer-employee groups |
| D. | Both B. and C. |
| Answer» D. Both B. and C. | |
| 89. |
Unemployment insurance is a component of |
| A. | ESI Act |
| B. | Social Security Act |
| C. | Worker’s Compensation Act |
| D. | None of the above |
| Answer» B. Social Security Act | |
| 90. |
Which is the right time for taking life insurance? |
| A. | When you are about to get married |
| B. | Soon after you have got married |
| C. | Just when you are joined a new job |
| D. | All the three ‘times’ are right |
| Answer» D. All the three ‘times’ are right | |
| 91. |
Which type of insurance protects the policyholder against loss or damage to a ship or its cargo on the high seas? |
| A. | Hazards |
| B. | Inland |
| C. | Transportation |
| D. | Mariney |
| Answer» D. Mariney | |
| 92. |
Which of the following is not covered under General Insurance? |
| A. | Theft insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | Fire insurance |
| Answer» C. Life insurance | |
| 93. |
Which principle suggests that insured should try to minimize the loss of his property even if it is insured? |
| A. | Principle of indemnity |
| B. | Principle of Mitigation |
| C. | Principle of Proximate Cause |
| D. | Principle of contribution |
| Answer» B. Principle of Mitigation | |
| 94. |
Group insurance is ideally suited for covering |
| A. | Affluent persons in the society |
| B. | Weaker sections of the society |
| C. | Employer-employee groups |
| D. | Both B. and C. |
| Answer» B. Weaker sections of the society | |
| 95. |
Fire insurance can be taken in respect of __________ |
| A. | movable property only |
| B. | immovable property only |
| C. | both movable and immovable properties |
| D. | persons only |
| Answer» C. both movable and immovable properties | |
| 96. |
All of the following can be classified as casualty insurance Except____________. |
| A. | marine insurance. |
| B. | general liability insurance. |
| C. | workers compensation insurance. |
| D. | burglary and theft insurance. |
| Answer» A. marine insurance. | |
| 97. |
________ is a social device for eliminating or reducing the loss of society from certain risk. |
| A. | Premium |
| B. | Policy |
| C. | Insurance |
| D. | Contract |
| Answer» C. Insurance | |
| 98. |
Insurance provides security against ________ |
| A. | Risk |
| B. | Losses |
| C. | Both (a) & (b) |
| D. | None of them |
| Answer» C. Both (a) & (b) | |
| 99. |
The ________ is the party who agrees to compensate the other person against possible losses. |
| A. | Insured |
| B. | Insurer |
| C. | Assured |
| D. | None |
| Answer» B. Insurer | |
| 100. |
The ________ is the party who gets his life or property insured against risks. |
| A. | Insured |
| B. | Insurer |
| C. | Assurer |
| D. | None |
| Answer» A. Insured | |
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