Insurance mcqs

✅ The correct answer is A.
Rs. 250 is the fees payable to the authority for issue / renewal of license to act as an insurance agent or composite insurance agent.

✅ The correct answer is C.
This principle is an important element within a contract of insurance. It means that the insured must have an interest in the subject matter of the insurance. In a practical sense, this means that the insured must suffer a financial or economic loss. This also means that the interest in the property must be a real one and not a contrived one.
A tenant is a person who occupies land or property rented from a landlord. So, ‘insurable interest’ does not lie with the person.

✅ The correct answer is C.
Agents confidential reports and moral hazard report would reflect on the lifestyle and habits of a proposer.

✅ The correct answer is C.
Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer. When a company seeks to raise capital through the offer of securities to the public, or seeks an admission to trading of securities, a prospectus or listing particulars will be issued detailing in-depth financial information about the company and its future objectives and strategies.

✅ The correct answer is B.
The key to successful closing lies helping the prospect to say yes.

✅ The correct answer is B.
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time.

✅ The correct answer is D.
Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.

✅ The correct answer is D.
As the limitations of traditional life insurance plans became obvious, a number of shifts occurred in the product profiles of life insurers. These have been summarised below:
(a) Unbundling: This trend involved separation of the protection and savings elements, and consequently the development of the products which stressed on protection of savings, rather than a vague mix of both.
(b) Investment linkage: The second trend was the shift towards investment linked products which linked benefits to policyholders with an index of investment performance. There was consequently a shift in the way life insurance was positioned.
(c) Transparency: Unbundling also ushered greater visibility in the rate of return and in the charges made by the companies for their services (like expenses, etc.). All these were explicitly spelt out and thus, could be compared.
(d) Non-standard products: The fourth major trend has a shift from rigid to flexible product structures which is also seen as a move towards non-standard products. When we speak of non-standard, it is with respect to the degree of choice which a customer can exercise with respect to designing the structure and benefits of the policy.

✅ The correct answer is D.
The maximum 90 percent of surrender value that can be granted as loan.

✅ The correct answer is D.
Uberrima fidesis a Latin phrase meaning utmost good faith literally, most abundant faith. It is the name of a legal doctrine which governs insurance contracts. Fully disclosing all material facts about the proposed by him in the proposal.