Insurance mcqs

✅ The correct answer is B.
The sum assured under keyman insurance policy is generally linked to Business profitability. Keyman is a term insurance policy where the sum assured is linked to the profitability of the company rather than the key person’s own income. The premium is paid by the company. This is tax efficient as the entire premium is treated as business expense. In case the key person dies, the benefit is paid to the company.

✅ The correct answer is B.
A free look period is where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges, etc. The free look period allowed is 15 days.

✅ The correct answer is C.
Proximate cause in this case is Ramesh falling off a horseback and suffers a grave injury. Proximate Cause is the actions of the person (or entity) who owes you a duty must be sufficiently related to your injuries such that the law considers the person to have caused your injuries in a legal sense.

✅ The correct answer is B.
Federal Bank is not a public sector bank in India. Federal Bank Limited is a major Indian commercial bank in the private sector headquartered at Aluva Kerala.

✅ The correct answer is C.
An alteration of the risk occurs when there is a change in the circumstances which, according to the contract, are to form the basis of the insurance, and the risk is thereby altered contrary to the implied conditions of the contract.

✅ The correct answer is D.
Ration card is a not a standard age proof. For the age proof, Aadhar Card, as it’s value has been increased, it can easily be used as an age proof in India. Aadhar, PAN, passport, Driving license issued by Govt. of India, SSC certificate, college/school leaving certificate, birth certificate, probably domicile certificate and nationality certificate as well.

✅ The correct answer is B.
Section 45 of Insurance Act, 1938 safeguards the interests of Policyholders. It also takes due care of the interest of both Insurers and Insured.

✅ The correct answer is C.
If the policyholder dies within grace period 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 A.
Policy decisions in an insurance organization doesnt mean decisions relating to issue of specific insurance policies. A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A policy is a statement of intent, and is implemented as a procedure or protocol.

✅ The correct answer is D.
All the statements are correct.
In complex cases the underwriter may adopt judgment method, rather than numerical method only, Decision as to acceptability of risk is that of the underwriter and Postponement of risk is also a kind of underwriting decision.