Insurance mcqs

✅ The correct answer is C.
Buying a TV set is not a long term goal of an individual. A long-term goal is something you want to accomplish in the future. Long-term goals require time and planning.

✅ The correct answer is A.
The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of original loan.

✅ The correct answer is D.
In a keyman’s policy the premium paid by the employer is treated as an allowable business expense, in a death claim the policy money is payable to the company and death claim proceeds are treated as taxable income of the employer.

✅ The correct answer is D.
By transferring risk to insurer, it becomes possible to enjoy peace of mind and plan one’s business more effectively.

✅ The correct answer is A.
Insurance value is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. It is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. The asset’s insured value can either be its replacement cost or its market value, depending on the insurance policy.

✅ The correct answer is A.
In insurance, need-gap analysis involves identifying the areas where the prospect needs insurance protection. In need gap analysis we engage in a process of gathering detailed information about the prospect’s insurance requirements, to identify and determine the assets and perils for which there is inadequate coverage. The objective here is to collect as much additional information about the prospect as possible.

✅ The correct answer is A.
Punjab National Bank was the first Indian bank started solely with Indian Capital. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present.

✅ The correct answer is C.
A third-party administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity.
Reimbursement of the hospitalization expenses can be claimed where cashless hospitalization facility is not availed or treatment is availed in a non-network hospital. In that case the pre-authorisation is not required. The customer would need to settle the bills at the hospital and submit the documentation in attestation within 30 days from the date of discharge.
In case of emergencies, cashless facility does not require pre-authorisation for the conduct of treatment in a hospital. After the patient is admitted, the hospital fax the pre-authorisation to the TPA.

✅ The correct answer is B.
Age of the life insured could be the basis of the cover in a group policy. Group insurance may offer life insurance, health insurance, and/or some other types of personal insurance.

✅ The correct answer is D.
The most common underwriting decision is to accept at an ordinary rate.
Acceptance at ordinary rates (OR) is the most common decision. This rating indicates that the risk is accepted at the same rate of premium as would apply to an ordinary or standard life.