Insurance mcqs

✅ The correct answer is B.
To make accurate statistical estimates, insurance risks must be handled as per the law of large numbers. In the insurance industry, the law of large numbers produces its own axiom. As the number of exposure units, or policyholders, increases, the probability is higher that the actual loss per exposure unit will equal the expected loss per exposure unit.

✅ The correct answer is C.
Money Back Plan is an example of an endowment assurance plan. In a money back plan, the insured person gets a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. It is an endowment plan with the benefit of liquidity.

✅ The correct answer is A.
An officer can conduct special enquiry in the case of death claim on suspicion of suppression of facts.

✅ The correct answer is B.
ALM is the practice of managing risks that arise due to mismatches between the assets and liabilities.

✅ The correct answer is C.
Insurable interest should be present at both the times, i.e. at the time of taking policy as well as at the time of claim.

✅ The correct answer is B.
No agent can do insurance business without a valid licence under sec.42 of the Insurance Act 1938. The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. It provides the broad legal framework within which the industry operates.

✅ The correct answer is A.
When undertaking financial planning for individuals without capital, Emergency funds savings need is likely to be addressed in every single case. An emergency fund is money that you have set aside to specifically cover any unexpected expenses that may come up.

✅ The correct answer is A.
The free look period available to cancel a policy is 15 days. The law allows the policyholder 15 days as free-look period from the date of receipt of the policy document. Policyholder is allowed to cancel the policy during this period and get a refund.

✅ The correct answer is C.
If a policyholder dies within the grace period, then the claim is payable after deducting the premium. As per the rules, if the death of the policy holder occurs on the due date of the premium payment or during the grace period, still the policy is valid and the beneficiaries will get the sum assured. But after deducting the the unpaid premium for the current year.

✅ The correct answer is B.
Empathy and ego drive are two most important and basic qualities for a good and successful agent. Someone with poor empathy can also have any level of ego drive. Yet, as determinants of sales ability, empathy and ego drive act on and, in fact, reinforce each other. The person with strong ego drive has maximum motivation to fully utilize whatever empathy he possesses.