Insurance mcqs

✅ The correct answer is A.
Using the conversion option present in a term policy you can convert the same to Whole life policy. Most term life insurance policies sold today come with a conversion feature that allows you to convert some or all of your term life insurance policy to a permanent policy like whole life, universal life or variable life.

✅ The correct answer is B.
Shorter the policy term, larger the investment element is correct in respect of Endowment policy.

✅ The correct answer is C.
Reversionary Bonuses are declared regularly and paid at the end (at the time of claim), i.e. on maturity of policy or death of the person. Hence, option (3) is incorrect.

✅ The correct answer is D.
Assets can be valued by Book value, Market value or Discounted present value.

✅ The correct answer is D.
Risk reduction and control involves steps like Education and training, Making environmental changes, Spreading out items to various locations, etc.

✅ The correct answer is D.
An insurance company needs assets for financing a new business for generating more competitive returns and for greater leverage in investment.

✅ The correct answer is C.
The time limit set for an insurer by IRDA Regulations for calling for documents from the date of receipt of claim intimation is 15 days.

✅ The correct answer is D.
If a policy is absolutely assigned to Ramesh and on the death of Srikant, the life assured, Ramesh will be paid the claim amount.

✅ The correct answer is D.
The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities.

✅ The correct answer is B.
As per HLV concept, the amount of insurance one can buy could be 10 to 15 times of one’s annual income. We have already seen that an asset is a kind of property that yields value or a return. For most kinds of property the value is measured in precise monetary terms. Similarly the amount of loss of value can also be measured.