Insurance

1. Non-traditional products involved shift from traditional products in terms of

Investment linkage
Transparency
Unbundling
All of the above

Detailed SolutionNon-traditional products involved shift from traditional products in terms of

2. Which of the following statements is incorrect in case of variable insurance plans?

Cash value is not guaranteed
Minimum death benefit is guaranteed in variable insurance plans
Where to keep the money invested is the decision of the policyholder
Flexible premium payments are allowed in such policies

Detailed SolutionWhich of the following statements is incorrect in case of variable insurance plans?

3. Which plan is suitable for accumulation of specific sum of money?

Whole life
Endowment
Money back
Term insurance

Detailed SolutionWhich plan is suitable for accumulation of specific sum of money?

4. In which of the following cases does insurable interest not exist?

Spouse
Business partner
Tenant
Self

Detailed SolutionIn which of the following cases does insurable interest not exist?

5. _________ means every party to an insurance contract must disclose all material information.

Insurable interest
Indemnity
Proximity
Uberrima fides

Detailed Solution_________ means every party to an insurance contract must disclose all material information.

6. Which of the following statements is incorrect?

Insurance agent should indicate the scale of commission if asked by the customer
Insurance agent should share the commission by way of rebate
Insurance agent should disclose his licence on demand
Insurance agent should indicate the premium to be charged

Detailed SolutionWhich of the following statements is incorrect?

7. Choose the correct statement.

There is no harm if an agent shares his commission with his client who has taken a policy from him
Sharing a part of the agent's commission is after all a trade practice and therefore, not objectionable
The agent is not obliged to disclose his commission to his client even if asked by the latter
The agent has to show his licence to his prospect-customer on demand

Detailed SolutionChoose the correct statement.

8. The most common form of bonus is

Cash bonus
Compound bonus
Dividend
Reversionary bonus

Detailed SolutionThe most common form of bonus is

9. Choose the correct statement.

A complaint can be launched against public insurer only
A complaint can be launched against a private insurer and a public insurer
A complaint can be launched against a private insurer only in the life sector
A complaint can be launched against a private insurer only in the non-life sector

Detailed SolutionChoose the correct statement.

10. Choose the correct statement(s)

Policy is an evidence of contract between the insurer and the insured
FPR signifies the commencement of the contract
A life insurance policy is subject to Indian Stamp Act
All of the above

Detailed SolutionChoose the correct statement(s)

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16