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.
Education and training
Making environmental changes
Spreading out items to various locations
All of the above
✅ The correct answer is D.
Risk reduction and control involves steps like Education and training, Making environmental changes, Spreading out items to various locations, etc.
Whole life policy
Mortgage policy
Bank FD
Decreasing term policy
✅ The correct answer is A.
Using the conversion option present in a term policy you can convert the same to Whole life policy. Most term life insurance policies sold today come with a conversion feature that allows you to convert some or all of your term life insurance policy to a permanent policy like whole life, universal life or variable life.
Shorter the policy term, lesser the investment element
Shorter the policy term, larger the investment element
Longer the policy term, larger the investment element
Term and investment element do not bear any relationship
✅ The correct answer is B.
Shorter the policy term, larger the investment element is correct in respect of Endowment policy.
Payable on maturity
Payable on death
Both A & B
Payable at any time during the term of a policy
✅ The correct answer is C.
Reversionary Bonuses are declared regularly and paid at the end (at the time of claim), i.e. on maturity of policy or death of the person. Hence, option (3) is incorrect.