Insurance mcqs

✅ The correct answer is C.
Agent is known as primary underwriter. He or she is in the best position to ascertain if the facts being presented are true, since he or she is in the direct contact with the proposed life.

✅ The correct answer is B.
Losses related to the extended period when a key person is unable to work are covered under keyman insurance.

✅ The correct answer is D.
All the above are correct.
There is no difference between an individual agent and a corporate agent as both of them represent an insurance company, An agent can work for a life insurer as also a non-life insurer, either individually or together and A composite agent means an agent working for one life and one non-life insurer.

✅ The correct answer is C.
If a policy is lapsed for a very short period of time only, Certificate of good health would be the requirement.

✅ The correct answer is A.
As per Section 45, a policy is not to be called in question on the grounds of misstatement after two years. Hence, statement (B) is false.

✅ The correct answer is A.
In money-back policy, the claim payment is made in the form of periodic payments. Money back plan simply means that money comes back to the life insured after a specific interval of time as survival benefit. The money back is guaranteed on the survival of the policyholder. However, in case of death of the policyholder, the nominee gets the sum assured and accrued bonuses, if any.

✅ The correct answer is B.
All chronic diseases are not covered there are some exclusion.

✅ The correct answer is C.
The premium of ULIP is divided into three parts:
1. Firstly, there is a policy allocation charge (PAC) which is comprised of agents’ commission, policy setup costs, administrative costs and statutory levies.
2. The second component is the mortality charge which is the cost of providing risk cover.3 The balance of premiums after meeting the above two are allocated for the purchase of units.

✅ The correct answer is B.
In a Ulip, the entire amount paid as premium is not used to purchase units. The insurers deduct certain charges and fees before allotting units. The remaining premium amount is invested in various asset classes such as debt, equity or both (called fund options) depending on policyholder’s choice.

✅ The correct answer is C.
A related doctrine is the insurance law doctrine of efficient proximate cause. Under this rule, in order to determine whether a loss resulted from a cause covered under an insurance policy, a court looks for the predominant cause which sets into motion the chain of events producing the loss, which may not necessarily be the last event that immediately preceded the loss. Many insurers have attempted to contract around efficient proximate cause through the use of “anti-concurrent causation” (ACC) clauses, under which if a covered cause and a non-covered cause join together to cause a loss, the loss is not covered.