Insurance mcqs

✅ The correct answer is D.
In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay.
An insurance contract commences when the life insurance company issues a first premium receipt (FPR). The FPR is the evidence that the policy contract has begun.
Any instrument mentioned in Schedule I to the Indian Stamp Act is chargeable to duty as prescribed in the schedule. These include affidavit, lease, memorandum and articles of company, bill of exchange, bond, mortgage, conveyance, receipt, debenture, share, insurance policy, partnership deed, proxy, share etc. The Government can reduce or remit whole or part of duties payable. So, all the statements are correct.

✅ The correct answer is C.
Day care centre in health insurance parlance would mean centre where procedures requiring less than 24 hrs hospitalization are done.

✅ The correct answer is C.
A worker aged 50 in an underground coal mine may not qualify for a nonmedical underwriting.

✅ The correct answer is D.
Simple reversionary bonus, Compound reversionary bonus and Terminal bonus, all this are bonus.
Simple reversionary bonus is a with profits life assurance bonus, normally declared annually, which is based on the profits of the life company’s investment and is payable at the maturity of the policy or prior death.
Simple Reversionary bonus (SRB) This type of bonus is calculated on the sum assured only. This bonus is declared annually and is accrued to be paid out at the time of a claim or maturity.
Terminal Bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy.

✅ The correct answer is D.
Investment in ULIPs is eligible for tax benefit up to a maximum of Rs A. 5 lacs under Section 80C of the Income Tax Act.

✅ The correct answer is D.
Of late, changing lifestyles of people lead to more borrowings. A debt cycle is continual borrowing that leads to increased debt, increasing costs, and eventual default.

✅ The correct answer is B.
Network provider refers to a hospital/health care provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility.

✅ The correct answer is C.
A qualified prospect is one who is academically well qualified to buy insurance. Potential customer or client qualified on the basis or his or her buying authority, financial capacity, and willingness to buy. Also called sales lead.

✅ The correct answer is D.
Income, occupation, lifestyle, habits and many other factors play an important role in financial underwriting.

✅ The correct answer is B.
On health insurance, lifetime cover is mandatory.