Insurance mcqs

Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income?

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Yash only
Yash and his wife only
Yash, his wife and his oldest child
Yash, his wife and both his children
✅ The correct answer is D.
Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for Yash, his wife and both his children will qualify as deductible from Yash’s taxable income.

State the correct statement

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Survey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose
To find out the true value of asset
To find out how the asset came into the owner’s possession
To know whether any other property in the neighbourhood can be insured
✅ The correct answer is A.
Survey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose. Surveys give you objective information on commercial or residential properties and their potential exposure to loss.

Pick out the correct statement.

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Extension of premium paying period is normally allowed as an alteration in a policy
Increase in sum assured will be welcomed as a preferred alteration in a policy
Splitting of a policy into two or more is allowed as an alteration
Notice is not always necessary in an assignment to be given by the assured to the insurer
✅ The correct answer is C.
Splitting of a policy into two or more is allowed as an alteration. There are many alterations in insurance policies that can be noted on the certificates. Any variation to the text of a life insurance policy, including a correction, is known to insurance professionals as `Alteration’. A policy evidences a life insurance contract between the insured and the insurer.

As per IRDA (Protection of Policyholder’s Interest) Regulations, 2002, a claim under a life policy shall be paid or be disputed within

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7 days
15 days
30 days
45 days
✅ The correct answer is C.
As per IRDA (Protection of Policyholder’s Interest) Regulations, 2002, a claim under a life policy shall be paid or be disputed within 30 days from the date of receipt of all relevant papers and clarifications required.

State the correct sentence

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A minor is not eligible for insurance
Proposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established
A minor has no insurable interest in his life and therefore, is ineligible for insurance
Proposal on a minor life can be submitted by anyone
✅ The correct answer is B.
Proposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established.

Identify the incorrect statement out of the following ones.

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There is a bar on appointment of a minor as agent of an insurance company
A person found guilty of fraud or any criminal offence is ineligible for appointment as agent of an insurer
A minor can be appointed agent of a life insurance company
No applicant is exempt from mandatory training before appointment as agent
✅ The correct answer is C.
A minor cannot be appointed as an agent of a life insurance company.