Insurance

1. State which of the following ones is a transactional product.

Bank Deposit
Life Insurance
Shares in stock market
Bonds and debentures

Detailed SolutionState which of the following ones is a transactional product.

2. Insurance needed by a person can be determined by

Human Life Value method
Life Term proposition method
Future Life value method
Human Economic value method

Detailed SolutionInsurance needed by a person can be determined by

3. Pick out the incorrect statement.

Life insurance is sold, not bought
Selling is neither a science nor an art
In prospecting for life insurance, members of a community association will be classified as a natural market
Loss assessment is not part of sales process

Detailed SolutionPick out the incorrect statement.

4. Identify the correct statement out of the following ones.

In emergencies insurer may waive preauthorisation for entering into a hospital for treatment
In all cases preauthorisation either by the insurer or TPA is a must before getting admitted into a hospital
There is no provision for nomination in a health insurance cover
Summary of benefits, terms and conditions for each product in a health cover is not mandatory

Detailed SolutionIdentify the correct statement out of the following ones.

5. In keyman insurance policy the basis for issue of such a policy is

Income of the keyman
History of the business
Profitability of the business and the role of the keyman in that profitability
State of the national economy and rate of inflation

Detailed SolutionIn keyman insurance policy the basis for issue of such a policy is

6. Which is correct

It may lead to community rating
It may lead to abuse of health insurance cover
Moral Hazard in health insurance would mean adverse selection
Risk pooling will be there in moral hazard

Detailed SolutionWhich is correct

7. Pick out the correct sentence from the flowing ones.

Family floater policy does not cover parents
Family floater is for self and spouse only
Family floater policy covers self, spouse, parents and dependants
Uncle and aunt can be covered in a family floater

Detailed SolutionPick out the correct sentence from the flowing ones.

8. State the correct statement out of these.

Every pension is a kind of annuity
Every annuity is also a pension
Pension and annuity are one and the same
Every pension is not an annuity

Detailed SolutionState the correct statement out of these.

9. State the correct option

Amount of annuity depends on duration of annuity payments, principal sum of money, investment period and rate of return
Amount of annuity does not depend on the principal sum of money
Investment period has no relation to the amount of annuity
Annuity is independent of rate of return

Detailed SolutionState the correct option

10. Unbundling of life insurance products refers to

Correlation of life insurance with bonds
Correlation of life insurance with equities
Combination of protection with savings element
Separation of protection and savings element

Detailed SolutionUnbundling of life insurance products refers to

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