Insurance mcqs

Which of the below statement is false with regards to nomination?

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Policy Numbermination is not cancelled if the policy is assigned to the insurer in return for a loan
Nomination can be done at the time of policy purchase or subsequently
Nomination can be changed by making an endorsement in the policy
A nominee has full rights on the whole of the claim
✅ The correct answer is D.
A nominee doesnot has full rights on the whole of the claim. In the new insurance law, if an immediate family member such as spouse is made the nominee, then the death benefit will be paid to that person and other legal heirs will not have a claim on the money.

Which of the below forms first part of a standard insurance policy document?

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Policy schedule
Standard provisions
Specific policy provisions
Claim procedure
✅ The correct answer is A.
Policy schedule forms first part of a standard insurance policy document. The standard policy document typically has three parts which are the policy schedule, standard provisions and the policy’s specific provisions.

Which is the following item is good for wealth accumulation purposes?

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Bank loans
Investment in shares
Investment in Term Insurance
Investment in savings bank accounts
✅ The correct answer is B.
Investment in shares is good for wealth accumulation purposes. Individuals have financial goals which motivate them to invest in specific havens. However, the choice of investment avenue can make or break the realisation of financial dreams. It is because of the forces of inflation and taxes. These tend to reduce the purchasing power of your money and impede faster wealth accumulation.

A standalone health insurance company is

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A health insurance company which has only one office throughout the country
A life insurance company selling general insurance products like health insurance
A general insurance company which sells only health products
All of the above
✅ The correct answer is C.
A standalone health insurance company is a general insurance company which sells only health products. Stand-alone insurance refers to an insurance product that a business or individual purchases to cover a specific risk or cost.

In Need Analysis the steps followed are

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Analysis of present and future needs of the client
Financial value of the above needs
Gap between funds needed for goals fulfilment and the available funds with the client
All of the above
✅ The correct answer is D.
In Need Analysis the steps followed are Analysis of present and future needs of the client, Financial value of the above needs and Gap between funds needed for goals fulfilment and the available funds with the client.

Select the option that best describes a policy document.

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It is evidence of the insurance contract
It is evidence of the interest expressed by the insured in buying an insurance policy from Co
It is evidence of the policy (procedures) followed by an insurance company when dealing with channel partners like banks, brokers and other entities
It is an acknowledgement slip issued by the insurance company on payment of the first premium
✅ The correct answer is A.
Policy document is a detailed document and it is the Evidence of the insurance contract which mentions all the terms and conditions of the insurance. The insured buys not the policy contract, but the right to the sum of money and its future delivery.

The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Which main life stage is the most likely to fall into?

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Young married
Young married with children
Pre-retirement
Retirement
✅ The correct answer is D.
The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Retirement is the most likely to fall into.