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.

721. The changes in healthcare costs over recent years has had what general impact on healthcare insurance?

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A fall in average premium levels
A reduction in underwriting requirements
A rise in the need for cover
A strengthening of the insurable interest rules
✅ The correct answer is C.
The changes in healthcare costs over recent years has had a rise in the need for cover on healthcare insurance.

722. With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets.

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Discounted future value
Discounted present value
Market value
Book value
✅ The correct answer is D.
With regards to valuation of assets by insurance companies, Book value is the value at which the life insurer has purchased or acquired its assets.

723. Which is correct

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In insurance subsidy plays a part in fixing premium
Losses are shared by subsidy
A few persons have to share the loss of many
Losses of a few persons are shared by many persons thus reducing the burden of contribution to loss compensation
✅ The correct answer is D.
Losses of a few persons are shared by many persons thus reducing the burden of contribution to loss compensation.

724. State which one of the following statements is correct?

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The tax provisions are the same for all kinds of savings
The tax provisions are included in the Constitution
Both the statements above are correct
Both the statements above are wrong
✅ The correct answer is D.
Both the statements are incorrect.
The tax provisions are not the same for all kinds of savings. The tax provisions are not included in the Constitution.

730. _________ relate to one’s ability to interact effectively with other workers and customers, both at work and outside.

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Hard skills
Soft skills
Negotiating skills
Questioning skills
✅ The correct answer is B.
Soft skills relate to one’s ability to interact effectively with other workers and customers, both at work and outside. A soft skill is a personal attribute that supports situational awareness and enhances an individual’s ability to get a job done. The term soft skills is often used as a synonym for people skills or emotional intelligence.