Insurance mcqs

✅ The correct answer is A.
Variable Life Insurance is a kind of Whole life Insurance. Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fund, except it’s only available within a variable life insurance policy.

✅ The correct answer is A.
During Post retirement an individual appreciate past savings the most. Retirement usually comes at the end in the list of financial goals of most people.

✅ The correct answer is D.
Uberrima fides means every party to an insurance contract must disclose all material information.

✅ The correct answer is D.
The major appeal for non-traditional products was in terms of Inflation beating returns, Direct linkage with investment gains and Flexibility & Higher surrender value.

✅ The correct answer is A.
Life Insurance is not a tangible good. Because life insurance is not a tangible asset, it cannot be counted against you for things such as food stamps or other assistance programs.

✅ The correct answer is B.
The policy must not have acquired surrender value is the condition for special revival. Typically, one should have paid at least three years’ premium to the insurer and thereafter can opt for either one of the 2 above mentioned options for policies with a term of 10 years or more. For policies with a lesser term, at least two years’ premium payment is mandatory.

✅ The correct answer is D.
Term policy proceeds under MWP Act is beyond the scope of the creditors. If the Insurance policy was purchased under MWP Act, creditors cannot claim any amount from the policy proceeds and thus the claimed amount becomes available to the nominees.

✅ The correct answer is C.
Immediate Annuity and Deferred Annuity are the types of Annuities.
An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash.
A deferred annuity is an insurance contract designed for long-term savings. Unlike an immediate annuity, which starts annual or monthly payments almost immediately, investors can delay payments from a deferred annuity indefinitely. During that time, any earnings in the account are tax-deferred.

✅ The correct answer is D.
Amount of annuity payable is inversely related to duration of annuity payments. Usually, the time period is 1 year, which is why it is called an annuity, but the time period can be shorter, or even longer. These equal payments are called the periodic rent. The amount of the annuity is the sum of all payments.

✅ The correct answer is A.
Retention of risk may be done conveniently by large corporations. The business would be responsible for all costs and damages that occur as the result of a crisis, accident or other unforeseen incident that results in loss. Retention refers to the assumption of risk of loss or damages.