Insurance mcqs

✅ The correct answer is B.
An underwriter is an investment bank that helps companies introduce their new securities to the market. In the insurance business, an underwriter is a company liable for insured losses in return for a fee (premium).

✅ The correct answer is D.
All the statements are correct.
Agent is primary underwriter as also field underwriter, Numerical method of underwriting is by far the most objective method and Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk.

✅ The correct answer is D.
The purpose of many insurance policies is to provide a replacement for lost, damaged or destroyed goods. Hence, insurance pays when there is loss of asset.

✅ The correct answer is A.
In a money back plan, Sum insured is the death claim payable. Money-back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.

✅ The correct answer is C.
Agent’s license is to be renewed after every 3 year.

✅ The correct answer is B.
Sharing the losses of few by many best describes the process of insurance.

✅ The correct answer is D.
“A clause precluding death due to pregnancy for a lady who is expecting at the time of writing the contract” will be included in Specific policy provisions.

✅ The correct answer is A.
Nomination can be changed at will by the assured during the course of the policy. There is no limit on how many times a nominee can be changed during the term of a particular policy though some companies may charge money for nomination change.

✅ The correct answer is A.
In determination of premium higher the rate of interest assumed the lower is the premium.

✅ The correct answer is C.
Universal Life plans provide for Payment of additional premiums over and above the target amount and Skipping of premiums.