Insurance mcqs

✅ The correct answer is C.
Cashless policies mean that the health insurance company settles the bill directly with healthcare provider, whether a hospital or a nursing home. This is to reduce the direct financial burden on insured individual at the time of hospitalization.

✅ The correct answer is B.
In traditional life insurance policies, the investment risk is borne by the insurance company, while in unit linked plans, the investment risk is borne by the unitholder.

✅ The correct answer is A.
In group insurance, risk of individuals is assessed in a group. Hence, the given statement is true.

✅ The correct answer is D.
Amount of annuity payable depends on all of the above.

✅ The correct answer is B.
Shopkeeper not advising the customer on the best product in a category cannot form the basis for a valid consumer complaint.

✅ The correct answer is A.
A rider is an add-on cover to the base policy that provides additional benefits. Under this, if death of the policyholder occurs due to an accident then, apart from paying the life insurance benefit promised under the base policy, the policy will also pay an additional sum insured as specified in the rider.

✅ The correct answer is D.
All the statements are incorrect.
Free look period does not allow the insured to return the policy within 30 days of receipt of the policy bond, If the policy is returned as above, premium is refunded by the insurer and PMLA is applicable to life insurance.

✅ The correct answer is C.
Dr. Huebner is known widely as “the father of insurance education.” He originated the concept of “human life value”, which became a standard method of calculating insurance value and need.

✅ The correct answer is D.
In Unit Linked plan, the Fund Value is a product of Net Asset Value & No. of Units. A value fund is a fund that follows a value investing strategy and seeks to invest in stocks that are deemed to be undervalued in price based on fundamental characteristics.

✅ The correct answer is B.