Insurance mcqs

✅ The correct answer is D.
Tax planning is not illegal in India. When tax planning is done inside the frameworks defined by the respective authorities, it is fully legal and in fact a smart decision. However, using shady techniques to avoid tax payments is illegal.

✅ The correct answer is C.
Endowment assurance does not possess Survival Benefit. An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’) or on death.

✅ The correct answer is D.
Coverage against loss through stealing by individuals not in a position of trust is called Theft Insurance. Theft-insurance contracts cover losses from burglary, robbery, and other theft.

✅ The correct answer is C.
Post-retirement income security is the basic contingency associated with pensions. A pension plan is a good way to secure your financial stability post-retirement. These pension plans which are maintained by the employers protect you from any uncertainty that may come unannounced post your retirement.

✅ The correct answer is B.
Death claims are settled in the favour of trustees, not in the favour of nominees

✅ The correct answer is D.
Shares is an accumulation product. Accumulating shares is a classification of common stock given to shareholders of a company in lieu of or in addition to a dividend.

✅ The correct answer is D.
Quantum of pension under Defined Benefit type would depend on Accrual rate, Salary and Pensionable service.

✅ The correct answer is C.
Notice of assignment and notice of nomination have to be given to the insurer. Transfer by the holder of a life insurance policy (the assignor) of the benefits or proceeds of the policy to a lender (the assignee), as a collateral for a loan. In the event of the death of the assignor, the assignee is paid first and the balance (if any) is paid to the policy’s beneficiary.

✅ The correct answer is B.
The easiest people to approach would be one’s family and friends. Also, relatively easy to approach are people with whom we do business; people who work in the food stores, clothing stores, banks, etc. Other such people would be those who know us such as friends, acquaintances, people who belong to the same organisations and so forth. To sum up, these prospects form part of what we call the sales person’s natural market.

✅ The correct answer is B.
A policy is affected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy become payable to the Official trustee of the State.