Insurance

1. Which are the methods to manage risks?

Risk Avoidance
Risk Retention
Risk Reduction
All of the above

Detailed SolutionWhich are the methods to manage risks?

2. Government of India transacts life insurance business in India through which of the following:

LIC of India
GIC of India
Postal Life Insurance
All of the above

Detailed SolutionGovernment of India transacts life insurance business in India through which of the following:

3. The emergence of which of the following necessitates insurance as a form of security?

Joint family system
Nuclear family system
Both A & B
None of the above

Detailed SolutionThe emergence of which of the following necessitates insurance as a form of security?

4. If an agent is found guilty of criminal misappropriation the designated person will _________ ,_________

Cancel the license
Issue a duplicate license
Renew the existing license
Take some fees from the agent

Detailed SolutionIf an agent is found guilty of criminal misappropriation the designated person will _________ ,_________

5. In insurance , need-gap analysis involves_________

Identifying the areas where the prospect needs insurance protection
Indentifying people to work as insurance agents
Identifying how much assets a prospect has
Identifying the poverty level of the prospects

Detailed SolutionIn insurance , need-gap analysis involves_________

6. _________ is the fees payable to the authority for issue / renewal of license to act as an insurance agent or composite insurance agent.

250
150
520
100

Detailed Solution_________ is the fees payable to the authority for issue / renewal of license to act as an insurance agent or composite insurance agent.

7. Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. To whom will the payment be made in this case?

Mahesh
Karan
The payment will be shared equally by Mahesh and Karan
Neither of the two because Mahesh has suffered the heart attack but the policy is assigned in the favor of Karan

Detailed SolutionMahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. To whom will the payment be made in this case?

8. Amrita is pregnant. She has applied for a term insurance cover. WHICH of the below option will be the best option to choose for an underwriter to offer insurance to Amrita? Choose the most likely option.

Acceptance at ordinary
Acceptance with extra premium
Decline the proposal
Acceptance with a restrictive clause

Detailed SolutionAmrita is pregnant. She has applied for a term insurance cover. WHICH of the below option will be the best option to choose for an underwriter to offer insurance to Amrita? Choose the most likely option.

9. What will happen if the policy holder does not pay the premium by the due date and dies during the grace period?

The insurer will consider the policy void due to non- payment of premium by the due date and hence reject claim
The insurer will pay claim and waive off the last unpaid premium
The insurer will pay the claim after deducting the unpaid premium
The insurer will pay the claim after deducting the unpaid premium along with interest which will be taken as 2% above the bank savings interest rate

Detailed SolutionWhat will happen if the policy holder does not pay the premium by the due date and dies during the grace period?

10. In order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law?

Premiums must be paid for least 2consecuitve years
Premiums must be paid for least 3consecuitve years
Premiums must be paid for least 4consecuitve years
Premiums must be paid for least 5consecuitve years

Detailed SolutionIn order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law?

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