Insurance mcqs

✅ The correct answer is C.
Cold calling is a technique whereby a salesperson contacts individuals who have not previously expressed an interest in the products or services that are being offered.

✅ The correct answer is D.
Photo, Address proof and Proof of Identify are the KYC documents.

✅ The correct answer is B.
Of 400 houses costing each Rs.20, 000 if on an average 4 houses are damaged in fire causing a total loss of Rs.80,000, Rs.200 should be the annual contribution of each house owner.

✅ The correct answer is D.
Both the statements are incorrect.
Mutuality is the principle of private, commercial insurance; individuals enter the pool for sharing losses, and pay according to the best estimate of the risk they bring with them and Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio.

✅ The correct answer is A.
HLV concept helps to determine the Upper limit beyond which life insurance could be speculative. HLV helps to determine how much insurance one should have for full protection. It also tells us the upper limit beyond which life insurance would be speculative.

✅ The correct answer is B.
Term insurance plan is pure risk cover which pays out the sum assured in case of death and does not have any maturity benefits. You do not get any maturity benefits in a pure term plan because it is a pure protection insurance plan.

✅ The correct answer is D.
An insurance contract terminates after claim is paid.

✅ The correct answer is B.
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’) or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

✅ The correct answer is D.
In a Unit Linked plan, Fund value is the maturity claim payable. At the time of maturity of the plan, the policyholder receives the value of the fund, along with bonus and loyalty benefits, if any.

✅ The correct answer is D.
If premiums are not paid within grace period a policy is said to lapse. The typical grace period is 30 days. If the premium is unpaid even after the grace period, the policy would lapse. The process of reviving a policy varies depending on the time lapsed.