Insurance mcqs

✅ The correct answer is B.
Rebate is an allowed deduction in large sums assured and low frequency mode of payment. Typically most companies offer rebates for higher SA (higher than a certain amount). This is because the cost of servicing of all policies of the same type being almost the same, a higher SA means lower servicing cost per unit of SA. Consequently, this translates to higher profits/returns per unit of SA or per unit of premium paid for the company.

✅ The correct answer is C.
A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as Hacker Insurance.

✅ The correct answer is A.
Mutuality or pooling principle means flow of resources from many to one. Mutuality is the principle of private, commercial insurance; individuals enter the pool for sharing losses, and pay according to the best estimate of the risk they bring with them.

✅ The correct answer is D.
Subsidy is not an element of the life insurance business. A subsidy or government incentive is a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy.

✅ The correct answer is D.
Risk Retention means Self-insurance. In other words the retention of risk means one is liable to bear the losses himself up to the amount retained.

✅ The correct answer is C.
Non-participating policies could be offered in linked or non-linked platform. Life insurance policy whose policyholders do not receive dividends, because they are not participants in the interest, dividends, and capital gains earned by the insurer on premiums paid.

✅ The correct answer is D.
Revival would be subject to No increase in risk cover, Creation of reserve and Satisfactory evidence of insurability.

✅ The correct answer is A.
Insurance agent does not represents his client in the first place. Insurance Agents enter into a contract to represent an insurer.

✅ The correct answer is A.
An agent is the person that arranges for a customer to get the necessary insurance. An agent is a person who represents an insurance firm and sells insurance policies on its behalf. Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance. These are independent agents and captive or exclusive agents.

✅ The correct answer is A.
Prospecting in an insurance sale is gathering the names of people who may be interested in insurance.Prospecting is the process of gathering names of people who can be approached for a sales interview.