Administrator, Author at GetMCQs

2801. What is a policy withdrawal?

Discontinuation of premium payment by policyholder

Surrender of policy in return for acquired surrender value

Policy upgrade

Policy downgrade

✅ The correct answer is B.
Policy withdrawal is Surrender of policy in return for acquired surrender value. In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.

2802. Cost, which is related to specific cost object and economically traceable, will be classified as

direct cost

indirect cost

line cost

staff cost

✅ The correct answer is A.
Cost, which is related to specific cost object and economically traceable, will be classified as direct cost. A direct cost is a price that can be completely attributed to the production of specific goods or services.

2803. Probability distribution is classified as normal if expected return lies between

( + 1 and -1)

( + 2 and -2)

( + 3 and -3)

( + 4 and -4)

✅ The correct answer is A.
Probability distribution is classified as normal if expected return lies between ( + 1 and -1). A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

2804. Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as

over allocated budget

under allocated budget

under allocated indirect cost

over allocated direct cost

✅ The correct answer is C.
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.

2805. When critical illness rider benefit is payable?

When the life insured dies of a critical illness

When the insured is diagnosed with critical illness

When the life insured is diagnosed with a illness not covered under the policy

When the life insured assigns his critical illness rider benefit also in favour of assignee

✅ The correct answer is B.
A critical illness rider makes living benefits payable to the insured for medical expenses prior to death.Generally, the extra cover is equal to the sum assured on the base policy and is paid upon diagnosis of the illness.

2806. Which factor represents how well your system can adapt to increased demands?

Availability

Accessibility

Reliability

Scalability

✅ The correct answer is D.
Scalability factor represents how well your system can adapt to increased demands. Scalability is an attribute that describes the ability of a process, network, software or organization to grow and manage increased demand.

2808. Selecting an appropriate investment vehicle would not depend on

Liquidity

Tax benefit

Time horizon

Insurability

✅ The correct answer is D.
Selecting an appropriate investment vehicle would not depend on Insurability.

2810. Which one of following is main advantage of quantitative method?

non expression

non constant

objective

non objective

✅ The correct answer is C.
Objective is main advantage of quantitative method. Generally, quantitative methods are designed to provide summaries of data that support generalisations about the phenomenon under study.

2812. If employees of division A work for 8000 hours for $90 per hour, then rate must be paid in division B in accordance of single rate method will be

$90 per hour

less than $90 per hour

greater than $90 per hour

none of above

✅ The correct answer is A.

2814. Based on classification of claims (early or non-early), pick the odd one out?

Ramya dies after 6 months of buying a term insurance plan

Manoj dies after one and half years of buying a term insurance plan

David dies after two and half years of buying a term insurance plan

Pravin dies after five and half years of buying a term insurance plan

✅ The correct answer is D.
Pravin dies after five and half years of buying a term insurance plan, is the odd one among all. In other three cases death occurs within 3 years.

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