Insurance mcqs

✅ The correct answer is C.
Premium depend upon the decision of the underwriter.Their job is to review applications for insurance, analyze risks and decide whether the company will offer coverage.

✅ The correct answer is D.
The essential feature of an MRI is to act as a collateral for ensuring financial protection for home loan borrowers.

✅ The correct answer is B.
Actual Cash Value (ACV) is a method of valuing insured property or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.

✅ The correct answer is C.
Ration card is classified as non-standard by insurance companies.

✅ The correct answer is B.
Nuclear family system necessitates insurance as a form of security. Nuclear family system is a family structure that consists of two parents living with their children, also known as an immediate family.

✅ The correct answer is A.
Pooling consists of collecting premiums from numerous individuals to compensate the few who may suffer losses. The pooling of risk is fundamental to the concept of insurance.

✅ The correct answer is C.
Bank deposit addresses Savings. A savings account is an interest-bearing deposit account held at a bank or other financial institution that provides a modest interest rate.

✅ The correct answer is B.
There are two phases for a deferred annuity: the accumulation or deferral phase in which the customer deposits (or pays premiums) and accumulates money into an account; the distribution or annuitization phase in which the insurance company makes income payments until the death of the annuitants named in the contract.

✅ The correct answer is C.
These annuities may be purchased with a single payment or, as is more often the case, with a series of periodic payments.

✅ The correct answer is C.
In respect of Assignment the following are correct are Assignee becomes owner of the policy and Assignee cannot have better rights than assignor.