Insurance mcqs

✅ The correct answer is C.
Life insurance is a contingency product. Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc.

✅ The correct answer is A.
Fiscal policy is related with Public Revenue and Expenditure. In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to monitor and influence a nation’s economy.

✅ The correct answer is B.
In ULIPs, the result of policy allocation charge would be that less amount would be allocated for investment in units.

✅ The correct answer is D.
Maturity claim is payable when the insured survives policy term. Maturity Claim is associated with the Maturity Benefit of the Policy i.e. the claim which arises when the policy matures. It simply means that when the policy completes its tenure, a certain amount of money called Maturity Claim amount is settled towards the life assured.

✅ The correct answer is B.
No fees or charges need to be paid for lodging a complaint with ombudsman. All businesses are entitled to a number of “free” cases.

✅ The correct answer is B.
The measures to reduce chances of occurrence of risk are known as Loss prevention. The risk removed through risk pooling is known as insurance. Loss prevention measures trim down the chance of incidence of risk. The Insurance provides peace of brains and helps the person to plan his or her business efficiently.

✅ The correct answer is C.
Mortality is related to age and hence young people who are less likely to die are charged lower premiums as compared to old people. The level premium is a premium fixed such that it does not increase with age but remains constant throughout the contract period.

✅ The correct answer is D.
All the statements are incorrect.
Code of conduct is compulsory for a successful agent, Ethical standards does not conflict with drive to do good volume of business and Persistency of policies is under the control of agents as well as the insurer.

✅ The correct answer is A.
A policy is said to be withdrawn on surrender of the policy in return for surrender value. In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.

✅ The correct answer is A.
To assess the risk for rating purposes. Before acceptance of a risk, the insurer arranges a survey and inspection of the property. Risk transfer through risk pooling is called insurance. Loss prevention measures reduce the chance of occurrence of risk. Insurance provides peace of mind and helps one plan his business effectively.