Insurance

1. Which of the following statements are correct? i. The sum assured under group insurance is not fixed by the individual member. ii. A person whose proposal is declined under individual scheme can get insurance under group policy.

Statement i is correct
Statement ii is correct
Both statements are correct
None of the three

Detailed SolutionWhich of the following statements are correct? i. The sum assured under group insurance is not fixed by the individual member. ii. A person whose proposal is declined under individual scheme can get insurance under group policy.

2. In group insurance, risk of individuals is not assessed.

TRUE
FALSE
Partly true
Partly false

Detailed SolutionIn group insurance, risk of individuals is not assessed.

3. Section 45 of Insurance Act, 1938 speaks about rejecting a claim after _________ of taking a policy.

1 year
3 years
5 years
7 years

Detailed SolutionSection 45 of Insurance Act, 1938 speaks about rejecting a claim after _________ of taking a policy.

4. Which special feature of Unit Linked Policy allowed change from one fund to another?

Transfer
Switching
Assignment
Loan

Detailed SolutionWhich special feature of Unit Linked Policy allowed change from one fund to another?

5. What is the special feature of a Family Floater policy?

The total sum insured floats amongst the family members
Husband/wife, children and parents/parents-in-law can be covered
Both A & B
None of the three

Detailed SolutionWhat is the special feature of a Family Floater policy?

6. Which of the following statements best describes an ordinary annuity?

Equal cash flows at equal time intervals forever
Equal cash flows at equal time intervals for a specific time period
Lumpy cash flows at equal time intervals forever
Lumpy cash flows at equal time intervals for a specific time period

Detailed SolutionWhich of the following statements best describes an ordinary annuity?

7. Which of the following statements is correct?

The policy document has to be signed by a competent authority, but need not be compulsorily stamped according to the Indian Stamp Act
The policy document has to be signed by a competent authority and should be stamped according to the Indian Stamp Act
The policy document need not be signed by a competent authority, but should be stamped according to the Indian Stamp Act
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

Detailed SolutionWhich of the following statements is correct?

8. In which type of products were protection and saving elements separated?

Traditional cash value plans
Non-traditional plans
Both A & B
None of the above

Detailed SolutionIn which type of products were protection and saving elements separated?

9. In ULIPs, the result of policy allocation charge would be that _________ amount would be allocated for investment in units.

More
Less
High
Any of the above

Detailed SolutionIn ULIPs, the result of policy allocation charge would be that _________ amount would be allocated for investment in units.

10. Which of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?

Young people are mostly dependent
Old people can afford to pay more
Mortality is related to age
Mortality is inversely related to age

Detailed SolutionWhich of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?

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