Insurance mcqs

✅ The correct answer is D.
The standard length of the grace period is one month or 31 days. The days of grace may be computed from the next day after the due date fixed for payment of the premium.

✅ The correct answer is B.
Inflation means more purchasing power. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.

✅ The correct answer is A.
The entire general insurance business in India was nationalized by the Government of India through the General Insurance Business (Nationalisation) Act of 197B.

✅ The correct answer is B.
Rebate is not a factor in determining life insurance premium. Rebate is a portion of the agent’s commission returned to an insured or anything else of value given an insured as an inducement to buy.

✅ The correct answer is C.
Naveen is addressing his income needs by investing directly in corporate bonds. By Interest payments for he will receive this income.

✅ The correct answer is B.
Free look period under a policy would commence on the date of receipt of policy bond. A policy holder can return the policy back to the insurer within 15 days from the receipt of the policy documents.

✅ The correct answer is D.
In Variable life insurance, the death benefit and cash value of the policy fluctuate according to the investment performance of a special investment account into which premiums are credited.

✅ The correct answer is D.
Loss Prevention and Loss Reduction refer to measures to reduce chance of occurrence and measures to reduce degree of losses.

✅ The correct answer is D.
When one is near to his retirement years, the risk profile of an individual could be conservative. Anyone, senior citizen or millennial, can be a conservative investor.

✅ The correct answer is A.
If assets are overvalued, the result would be more surplus. As a result of over valuation of all the assets of an insurance company, the company’s financial statements would show more surplus than the actual one.