Insurance mcqs

✅ The correct answer is D.
If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims.

✅ The correct answer is C.
Higher the interest rate assumed, lower the premium. In other words the higher the rate of interest assumed, the lower the present value.

✅ The correct answer is C.
In case of hospitalization in a network hospital, admission would be on the basis of Smart card or Pre-authorisation from Insurer/TPA.

✅ The correct answer is C.
The term life insurance policy purchased under Section 6 of the MWP Act cannot be taken by the creditors.

✅ The correct answer is B.
Insurance refers to protection against an event that might happen whereas Assurance refers to protection against an event that will happen.

✅ The correct answer is A.
Rights and privileges in a policy will be found in Standard provisions in a policy document. The policy document is the most important document associated with insurance. It is evidence of the contract between the assured and the insurance company. It is not the contract itself.

✅ The correct answer is C.
The Indian Financial System Code (IFSC CodE. is an alphanumeric code that uniquely identifies a bank-branch participating in the Real-Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems.

✅ The correct answer is A.
Health is not a pension related contingency. Contingent benefits are the benefits payable if a scheme member dies during employment (or self-employment) to which a pension arrangement relates. The definition includes lump sum benefits and pensions payable to dependants.

✅ The correct answer is D.
Occupational hazards could emanate from Accident at work place, health problems and moral hazard in a job.

✅ The correct answer is B.
Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims. Therefore, insurance companies prefer it over a standard or higher risk because the former represent a better chance to make more profit. For the insurer, fewer claims equates to more money taken in and less money paid out.