Insurance mcqs

Illness/injury for which treatment was required during a pre-determined time is called –

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Pre-existing illness
Post-operative illness
Post-paid illnesses
Pre-correctional illnesses
✅ The correct answer is A.
Illness/injury for which treatment was required during a pre-determined time is called Pre-existing illness. A medical illness or injury that you have before you start a new health care plan may be considered a “pre -existing condition.”

Which among the following can be categorised under transactional products?

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Bank deposits
Life insurance
Shares
Bonds
✅ The correct answer is A.
Bank deposits can be categorised under transactional products. Transaction Banking division of a bank typically provides commercial banking products and services for both corporates and financial institutions, including domestic and cross-border payments, risk mitigation, international trade finance as well as trust, agency, depositary, custody and related services.

What are true about IMF?

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It’s headquarter is situated at Washington, D.C
It works to foster economic stability and global growth by providing policy, advice and financing to members
It negotiates conditions on lending and loans under their policy
It oversees the fixed exchange rate arrangements between countries
✅ The correct answer is E.
All the above are true about IMF.
It’s headquarter is situated at Washington, D.C, It works to foster economic stability and global growth by providing policy, advice and financing to members, It negotiates conditions on lending and loans under their policy and It oversees the fixed exchange rate arrangements between countries.

Which of the below statement is correct with regards to endowment assurance plan?

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It has a death benefit component only
It has a survival benefit component only
It has both a death benefit as well as a survival component
It is similar to a term plan
✅ The correct answer is C.
Endowment assurance plan has both a death benefit as well as a survival component. Endowment plan is a life insurance policy which provides you with a combination of both i.e.: an insurance cover, as well as an savings plan. It helps you in saving regularly over a specific period of time, so that you are able to get a lump sum amount on policy maturity, if the policyholder survives the policy term.

Which of the below death claim will be treated as an early death claim?

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If the insured dies within three years of policy duration
If the insured dies within five years of policy duration
If the insured dies within seven years of policy duration
If the insured dies within ten years of policy duration
✅ The correct answer is A.
If the insured dies within three years of policy duration will be treated as an early death claim. If the life assured dies during the term of the policy, the death claim arises. If the death has taken place within the first two years of the commencement of the policy, it is called an early death claim and if the death has taken after 2 years, it is called a non early death claim.

Identify the incorrect statements.

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Consumer Disputes involving private insurance companies can be heard by Consumer Forum or commission
Life Insurance does not come under Consumer Protection Act 1986
Complaints can be lodged against private insurers as also public sector companies/corporation like LIC
Complaints can be lodged only life insurance companies as also non-life insurance companies
✅ The correct answer is B.
Life Insurance comes under Consumer Protection Act 1986.