Top 80+ Solved Principles of Insurance MCQ Questions Answer
Q. The principle of utmost good faith does not apply to :
a. Facts of common knowledge
b. Facts of Law
c. Facts which are not material for underwriting
d. All the three kinds of facts mentioned above.
Q. Which of the statement is correct? A. Existence of the subject-matter is an express condition. B. There are no implied conditions in insurance contracts
a. A. is correct
b. is correct
c. Neither is correct
d. Both the correct
Q. Endorsement can be used in a policy giving effect to
a. Renewal
b. Change in premium
c. Change in subject-matter of insurance
d. All of the above
Q. Policy stamp needs to be affixed on the
a. Endorsement
b. Cover note
c. Policy
d. All of the above
Q. Cover note can be issued by
a. Agents
b. Development officers
c. Insurers
d. All of the above, depending on company guidelines
Q. What is the minimum age for a person to effect a contract of insurance?
a. 25 years
b. 18 years
c. 12 years
d. 20 years
Q. Insurable Interest is defined by:
a. The Insurance Act
b. The Contracts Act
c. By IRDA
d. Not defined in any written law
Q. Which of the following is true? A. Policy form is a legal document. B. The warranties inserted in a policy safeguard the interest of the insured.
a. A is True
b. B is True
c. Both are true
d. Neither is true
Q. In case of life insurance, insurable insurance should not exist?
a. At the inception of the policy.
b. At the time of a claim.
c. At the time of every renewal premium payment.
d. All the above occasions.
Q. Notification of Alterations in Risk is a condition
a. Precedent to liability
b. Subsequent to liability
c. Precedent to the contract
d. Subsequent to the contract
Q. A person’s insurable interest in his own life is:
a. Unlimited
b. Limited
c. 10 times the husband’s salary
d. None of the above
Q. Consideration on the part of the life insured in respect of a life insurance contract is
a. A promise to take a new policy
b. The insured’s promise to pay the premium under the policy.
c. The payment made towards premium by the insured.
d. Proposal completed and signed by the person.
Q. The policy holder’s duty to disclose material fact lies at the time of
a. Taking a policy
b. Revival of policy
c. Reinstatement of surrendered policy
d. All of the above
Q. Which of the following is an evidence of insurance contract?
a. Policy of insurance
b. Payment of premium
c. Cover note
d. Acceptance of proposal
Q. The clause which sets out the essence of the contract is
a. The Preamble
b. Recital Clause
c. Conditions
d. Operative Clause