McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 1. |
General insurance policies are generally taken for |
| A. | One year |
| B. | two year |
| C. | three year |
| D. | none of these |
| Answer» A. One year | |
| 2. |
When a policy matures on the death of the insured , it is expressed as: |
| A. | With profit policy |
| B. | without profit policy |
| C. | whole life policy |
| D. | None of these |
| Answer» C. whole life policy | |
| 3. |
In the revenue account bonus in reduction of premium is shown as |
| A. | Liability |
| B. | Income |
| C. | Expense |
| D. | None of these |
| Answer» C. Expense | |
| 4. |
The fixed assets of an insurance company are shown in |
| A. | Schedule 6 |
| B. | Schedule 7 |
| C. | Schedule 8 |
| D. | None of these |
| Answer» D. None of these | |
| 5. |
Insurance Regulations and Development Authorities Act came to effect in : |
| A. | 1938 |
| B. | 1999 |
| C. | 2000 |
| D. | None of these |
| Answer» B. 1999 | |
| 6. |
Which of the following of an insurance company does not fall under ‘ Income from investments’. |
| A. | Interest and dividend |
| B. | Profit on sale of investments |
| C. | Share transfer fees |
| D. | None of these |
| Answer» C. Share transfer fees | |
| 7. |
Which of the following of an insurance company is included in other asset |
| A. | Loan to director |
| B. | Agent’s balance(dr) |
| C. | Advance tax paid |
| D. | None of these |
| Answer» B. Agent’s balance(dr) | |
| 8. |
Reserve for unexpired risk is shown under : |
| A. | Reserves and surplu |
| B. | Current liabilities |
| C. | Provisions |
| D. | None of these |
| Answer» C. Provisions | |
| 9. |
In life insurance business , claims may arise on ……………………. |
| A. | death |
| B. | maturity |
| C. | death or maturity |
| D. | none of these |
| Answer» C. death or maturity | |
| 10. |
Surrender value is an expression that is used in case of ………………. Insurance business . |
| A. | Life |
| B. | Marine |
| C. | Fire |
| D. | None of these |
| Answer» A. Life | |
| 11. |
…………….. reserve is created to meet any loss due to natural calamity |
| A. | General reserve |
| B. | Special reserve |
| C. | Catastrophe reserve |
| D. | None of these |
| Answer» C. Catastrophe reserve | |
| 12. |
Life insurance is contract of …………………………………. |
| A. | Guarantee |
| B. | Indemnity |
| C. | Profit |
| D. | None of these |
| Answer» A. Guarantee | |
| 13. |
General insurance is a contract of ……………………………… |
| A. | Guarantee |
| B. | Indemnity |
| C. | Profit |
| D. | None of these |
| Answer» B. Indemnity | |
| 14. |
Double insurance is common in ……………………. Insurance. |
| A. | Life |
| B. | Fire |
| C. | Marine |
| D. | None of these |
| Answer» A. Life | |
| 15. |
Re insurance is generally found in ………………. Insurance |
| A. | Fire |
| B. | Marine |
| C. | Life |
| D. | None of these |
| Answer» D. None of these | |
| 16. |
Commission of an insurance company is shown in schedule |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | None of these |
| Answer» A. 2 | |
| 17. |
To ascertain profit in life insurance business ………………. Prepared. |
| A. | Revenue account |
| B. | Profit and Loss account |
| C. | Valuation balance sheet |
| D. | None of these |
| Answer» C. Valuation balance sheet | |
| 18. |
……………….. of an insurance company are shown in schedule 9. |
| A. | Loan |
| B. | Fixed asset |
| C. | cash & bank balance |
| D. | None of these |
| Answer» A. Loan | |
| 19. |
Insurance Act came into effect in ……………………………………….. |
| A. | 1938 |
| B. | 1956 |
| C. | 1949 |
| D. | None of these |
| Answer» A. 1938 | |
| 20. |
The agreement of insurance is called as……… |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» A. Policy | |
| 21. |
The consideration in insurance for covering the risk is called…………. |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 22. |
……………. Is the party who undertakes the risk in insurance |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» D. All of these | |
| 23. |
The party whose risk is covered in insurance is known as |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» B. Insured | |
| 24. |
In …………. The insurer agrees to pay a certain sum of money to the Policyholder either on his death or a certain age, whichever is less. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | Life insurance |
| Answer» D. Life insurance | |
| 25. |
General insurance includes ……………………………………….. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | All of these |
| Answer» D. All of these | |
| 26. |
LIC was nationalized in ………………………………………… |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» C. 1956 | |
| 27. |
Insurance business in India is regulated by …………………………….. |
| A. | LIC |
| B. | IRDA |
| C. | RBI |
| D. | SEBI |
| Answer» B. IRDA | |
| 28. |
Under ………….. , the sum assured is given to the beneficiary only On death of policy holder |
| A. | Whole life policy |
| B. | Endowment policy |
| C. | Annuity |
| D. | None of these |
| Answer» A. Whole life policy | |
| 29. |
………………… is the amount payable to the insured on the happening of event. |
| A. | premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 30. |
An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ……………….. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» B. Annuity | |
| 31. |
The amount given to the policy holder due to his liability of paying Further premium is called ……………………………….. |
| A. | Annuity |
| B. | Bonus |
| C. | Surrender value |
| D. | Claim |
| Answer» C. Surrender value | |
| 32. |
……………. Is an arrangement between two insurance companies whereby one transfers a part of risk to other . |
| A. | Re insurance |
| B. | Sub insurance |
| C. | Shared policy |
| D. | None of these |
| Answer» A. Re insurance | |
| 33. |
Revenue account is also called ………………………………… |
| A. | Share holders a/c |
| B. | Policy holders a/c |
| C. | Creditors a/c |
| D. | None of these |
| Answer» B. Policy holders a/c | |
| 34. |
Valuation balance sheet is prepared by ………………… business |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | All of these |
| Answer» C. Life insurance | |
| 35. |
The commission earned by insurance companies from others for giving them business under re insurance is called …………………… |
| A. | Commission on re insurance ceded |
| B. | Commission on re insurance accepted |
| C. | Agents commission |
| D. | None of these |
| Answer» A. Commission on re insurance ceded | |
| 36. |
The commission given by insurance companies to others for receiving Business under re insurance is called …………………. |
| A. | Commission on re insurance ceded |
| B. | Commission on re insurance accepted |
| C. | Agents commission |
| D. | None of these |
| Answer» B. Commission on re insurance accepted | |
| 37. |
The profit and loss amount of general insurance companies are prepared in ………………………………….. |
| A. | Form A-PL |
| B. | Form B – RA |
| C. | Form B – PL |
| D. | Form B – BS |
| Answer» C. Form B – PL | |
| 38. |
The principles of subrogation is applicable to ……………………… |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | All of these |
| Answer» D. All of these | |
| 39. |
Fire insurance, marine insurance etc come under ……………………… |
| A. | Life insurance |
| B. | General insurance |
| C. | Burglary insurance |
| D. | Double insurance |
| Answer» B. General insurance | |
| 40. |
In life insurance investments are come under the schedule …………. |
| A. | Schedule 7 |
| B. | Schedule 8 |
| C. | Schedule XI |
| D. | Schedule IX |
| Answer» B. Schedule 8 | |
| 41. |
A …………. Company should transfer 25% of its profit to a statutory Reserve |
| A. | Joint stock company |
| B. | Insurance company |
| C. | pvt ltd company |
| D. | Banking company |
| Answer» D. Banking company | |
| 42. |
Rebate on bill discounted is a ……………………… of the Banking company. |
| A. | Liability |
| B. | Assets |
| C. | Expense |
| D. | Income |
| Answer» A. Liability | |
| 43. |
Banks are required to transfer …………………. Of their profit to a statutory reserve |
| A. | 25% |
| B. | 20% |
| C. | 15% |
| D. | 10% |
| Answer» A. 25% | |
| 44. |
Rebate on bills discounted is ……………………………. |
| A. | Income |
| B. | Income received in advance |
| C. | Asset |
| D. | income accrued |
| Answer» B. Income received in advance | |
| 45. |
Banking business in India is largely governed by the Banking Regulation Act…………………….. |
| A. | 1932 |
| B. | 1956 |
| C. | 1949 |
| D. | 1938 |
| Answer» C. 1949 | |
| 46. |
………………… in India is largely governed by the Banking Regulation Act 1949 . |
| A. | Insurance busines |
| B. | Banking business |
| C. | Joint stock company |
| D. | Co-operative society |
| Answer» B. Banking business | |
| 47. |
Banking business in India is governed by the ……………….. Act. |
| A. | Partnership |
| B. | Company |
| C. | Insurance |
| D. | Banking regulations |
| Answer» D. Banking regulations | |
| 48. |
A banking company should transfer 25% of its profit to a ……………. |
| A. | General Reserve |
| B. | Capital Reserve |
| C. | Statutory Reserve |
| D. | Reserve fund |
| Answer» C. Statutory Reserve | |
| 49. |
A ………………….. loan is payable on demand |
| A. | Short term |
| B. | Demand |
| C. | Fixed |
| D. | Long term |
| Answer» B. Demand | |
| 50. |
Money at call and short notice is an ……………… of the banking company. |
| A. | Liability |
| B. | Asset |
| C. | Income |
| D. | Expense |
| Answer» B. Asset | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.