Insurance
Insurance MCQs with Answers and Explanations | Life, Health & General Insurance Objective Questions
Enhance your understanding of Insurance and Risk Management with our comprehensive collection of MCQs with answers and detailed explanations. Topics include principles of insurance, life insurance, health insurance, fire insurance, marine insurance, reinsurance, risk management, premium calculation, claims settlement, insurance laws, and regulatory framework. These objective questions are ideal for students, teachers, and candidates preparing for competitive and professional exams (CA, ACCA, ICMA, MBA, BBA, CSS, PMS, NTS, FPSC, PPSC, UPSC, insurance licensing exams, etc.). Each MCQ is followed by a clear explanation to strengthen concepts, improve problem-solving skills, and boost exam performance. Perfect for practice, revision, and self-assessment in the field of Insurance.
A) Rights
B) Title
C) Ownership
D) Any of the above
✅ ANSWER: D
Assignment involves transfer of Rights, Title, Ownership under the policy to another person/entity.
A) Motor insurance
B) Personal accident insurance
C) Medical and health insurance
D) Life insurance
✅ ANSWER: D
Life insurance is not the product of general insurance. General Insurance is a contract of indemnity which promises to make good your losses. In Life Insurance, the sum assured along with benefits is paid either on the event of death of the policy holder or on maturity of the policy.
A) Marketing
B) Selling
C) Advertising
D) Promotion
✅ ANSWER: B
Selling as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration.
A) Accept with reduced sum assured
B) Reject the proposal
C) Accept with lien
D) Accept with extra premium
✅ ANSWER: A
If the proponent has no insurable interest in the insured, the underwriter will accept with reduced sum assured.
A) Whole life plan
B) Endowment plan
C) Moneyback plan
D) ULIP
✅ ANSWER: D
ULIP is a life insurance product which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.
A) Proposal form
B) Proposal quote
C) Information docket
D) Prospectus
✅ ANSWER: D
A Prospectus is a formal legal document used by insurance companies that provides details about the product.
A) Employers
B) IRDA
C) General Insurers
D) Life Insurers
✅ ANSWER: D
Life Insurers markets personal pension products. Personal pensions (also known as “private pensions”) are long-term savings products that individuals contribute to on a voluntary basis, complementing state and workplace pensions. They have a role to play in linking long-term savers with long-term investment opportunities.
A) Reduced returns on account of inflation
B) Low accumulation in earlier years
C) Lower yields
D) Secure and safe investment
✅ ANSWER: D
Secure and safe investment is an advantage in cash value contracts. Cash value life insurance provides more financial flexibility.
A) Rajeev Gandhi Equity Scheme
B) Janata Personal Accident
C) Jan Arogya Scheme
D) Employees State Insurance Corporation
✅ ANSWER: A
Rajeev Gandhi Equity Scheme is not an example of social security schemes of the Government. The scheme is aimed at encouraging the flow of savings of small investors in the domestic capital market, and presents investors with tax benefits provisioned as a new section, 80CCG, in the Income Tax act.
A) He is a patient who receives medical attention without admission in a hospital
B) He is after admission in a hospital receiving medical attention and treatment while being there
C) He is a day care patient for treatment
D) He is a patient in a house receiving care of doctors
✅ ANSWER: B
An inpatient seeking medical attention for his medical problem after admission in a hospital receiving medical attention and treatment while being there.