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.

707. The method in which Profits of the ins.co. could be shared in the form of dividends are

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Portfolio method
Current money method
Both A & B
None of the three
✅ The correct answer is C.
The method in which Profits of the ins.co. could be shared in the form of dividends are Portfolio method and Current money method. An income portfolio focuses on making money through dividends or other types of distributions to stakeholders. An income portfolio should generate positive cash flow. A cash dividend is funds or money paid to stockholders generally as part of the corporation’s current earnings or accumulated profits.

708. Life Insurance marketing differs from marketing of products and services because

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Life insurance needs to be sold, rather than bought
Life insurance is intangible unlike a tangible product
Value of life insurance is not seen at the time of purchase unlike a consumable product
All of the above
✅ The correct answer is D.
Life Insurance marketing differs from marketing of products and services because Life insurance needs to be sold, rather than bought, Life insurance is intangible unlike a tangible product and Value of life insurance is not seen at the time of purchase unlike a consumable product.

710. In traditional cash value policies, the policy reserve form part of a _________

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Special investment account
General investment account
Both A & B
None of the above
✅ The correct answer is B.
In traditional cash value policies, the policy reserve form part of a General investment account. When an insurance company underwrites a new policy, it is paid a premium by the policyholder. These premiums are deposited into the insurer’s general account.