Insurance mcqs

✅ The correct answer is A.
According to common law, At the time of taking policy insurable interest must be present in a life insurance contract. If there was no insurable interest requirement, some people would be tempted to purchase life insurance policies to collect the death benefit by killing the insured. A person is always considered to have an unlimited insurable interest in his own life and health.

✅ The correct answer is B.
Human Life Value concept measures the value of a human life on the basis of his Net earnings. The human life value concept deals with human capital, which is a person’s income potential. It goes beyond just the numbers and considers the overall impact of losing someone, especially the breadwinner.

✅ The correct answer is B.
Terminal bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity.

✅ The correct answer is C.
Nominee doesnot have right to whole/part of the claim.

✅ The correct answer is D.
All the statements are correct.
Life insurance selling is different from selling of other items, Life insurance involves concept selling and hence challenging and An agent has to create in his client’s mind need for life insurance.

✅ The correct answer is D.

✅ The correct answer is D.
IRDA (Protection of Policyholders’ Interests) Regulations, 2002 defines a proposal form.

✅ The correct answer is C.
Duty to disclose arises at the time of taking the policy and at the time of revival of lapsed insurance.

✅ The correct answer is A.
The following proofs are required for payment of a death claim:
(i) An intimation of death by the nominee or a near relative.
(ii) Proof of age if not already admitted.
(iii) Proof of death.
(iv) Doctor’s certificate who attended the deceased during his last illness.
(v) Identity certificate from a reputable person who saw the body of the deceased life assured.
(vi) Certificate of cremation or burial from a reputable person who attended the funeral.
(vii) An employer certificate if any, of the deceased.

“Declaration of good health” is not required to be submitted.

✅ The correct answer is D.
The reason for charging level premiums is Risk increases as age increases, it is convenient to the policyholder and it is convenient to the insurer.