Insurance mcqs

✅ The correct answer is A.
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan. On foreclosure of a policy, nothing is payable to the policyholder.

✅ The correct answer is A.
Universal life insurance. Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States.

✅ The correct answer is C.
The essential purpose of Life Insurance is protection for loss of economic value of human life in the event of death or disability. The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

✅ The correct answer is B.
An agent represents the insurance company, whereas a broker represents an insured.

✅ The correct answer is A.
Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use Judgment method for underwriting. The judgment method is generally used where a single factor is to be considered or where the decision for acceptance or rejection is to be taken.

✅ The correct answer is C.
Friends taking out insurance on one another is not correct with regards to insurable interest.

✅ The correct answer is D.
Direct marketing involves Telemarketing, Insurance agents, Bancassurance, etc.

✅ The correct answer is B.
Yes, complaints can be lodged against any Insurer both in Public Sector and Private Sector in both Life and Non-Life sectors.

✅ The correct answer is B.
Moral hazard by health insurance companies can result in adverse selection. Adverse selection occurs when there’s a lack of symmetric information prior to a deal between a buyer and a seller.

✅ The correct answer is C.
Material facts are those that would help the insurer to decide the acceptability of risk and the rate of premium to be charged.