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) The policy document has to be signed by a competent authority, but need not be compulsorily stamped according to the Indian Stamp Act
B) The policy document has to be signed by a competent authority and should be stamped according to the Indian Stamp Act
C) The policy document need not be signed by a competent authority, but should be stamped according to the Indian Stamp Act
D) The policy document neither needs to be signed by a competent authority nor it needs to be compulsorily stamped according to the Indian Stamp Act
✅ ANSWER: B
According to the Indian Stamp Act, the policy document has to be signed by a competent authority as well as stamped. Hence, option (2) is correct.
Individual Grievance Management Service
Integrated Grievance Management System
Indian Grievance Management System
Insurance Grievance Management System
✅ The correct answer is B.
The Integrated Grievance Management System(IGMS) facilitates online registration of policyholders’ complaints and helps track their status.
60 days
45 days
30 days
15 days
✅ The correct answer is D.
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within 15 days of receiving the policy document.
Lapsation method
Contribution method
Accumulation method
None of the above
✅ The correct answer is B.
An alternative to bonus method of distribution of surplus is Contribution method. Contribution method is a method of apportioning loss among multiple insurers.
Premium will increase over time
Premium will decrease over time
In decreasing term insurance the premium is constant through the term
Premium is returned periodically
✅ The correct answer is C.
In decreasing term insurance the premium is constant through the term. A term life insurance policy in which the policyholder pays a constant premium but the benefit decreases over time, either on a monthly, quarterly, or yearly basis.
5 days
10 days
15 days
30 days
✅ The correct answer is D.
The time limit set for an insurer by IRDA Regulations for settling non-early claims from date of receipt of all documents are 30 days.
Premium
Proposal
Understanding
Acceptance
✅ The correct answer is A.
The premium is the consideration from the insured, and the promise to indemnify, is the consideration from the insurers.
Bonuses are declared only once a year and do not reflect daily fluctuations in the value of the assets
Policyholder’s benefits depend on assumptions/discretions of the insurance company
Bonus structure does not reflect the true value of assets of the insurer
All of the above
✅ The correct answer is D.
Bonuses are declared only once a year and do not reflect daily fluctuations in the value of the assets, Policyholder’s benefits depend on assumptions/discretions of the insurance company and Bonus structure does not reflect the true value of assets of the insurer are the disadvantages of Traditional With Profit policies over ULIPs.
First Pregnancy clause
General provisions
Policy schedule
Standard provisions
✅ The correct answer is A.
First Pregnancy clause is the specific provision in a policy.
Risk Retention
Risk Transfer
A & B correct
None of the above
✅ The correct answer is C.
In business economics, risk financing is concerned with providing funds to cover the financial effect of unexpected losses experienced by a firm. Traditional forms of finance include risk transfer, funded retention by way of reserves (often called self-insurance) and risk pooling.