Insurance mcqs

✅ The correct answer is C.
Life Insurance covers the risk of dying too early and living too longer.

✅ The correct answer is D.
Claim rejection is not an underwriting decision. If an insurance company has reason to believe that any information pertaining to these parameters was suppressed, it can reject the claim.

✅ The correct answer is B.
An ordinary annuity is a series of equal payments made at the end of each period for a fixed period of time.

✅ The correct answer is C.
The main advantage of a policy loan over other loans is that there is no credit check; the interest rate is usually much lower; the policyholder can pay back the loan according to virtually any repayment schedule; and, in fact, the policyholder is not even legally obligated to pay back the loan.

✅ The correct answer is B.
A policy lapses if the premium is not paid within the grace period. A policy lapses when you skip paying its premium, not just on the due date but even within the grace period—which is typically a month.

✅ The correct answer is D.
SEBI does not belong to regulatory bodies in India. The Securities and Exchange Board of India was established as a non-statutory regulatory body in the year 1988, but it was not given autonomous, statutory powers until January 30, 1992, when the Securities and Exchange Board of India Act was passed by the Parliament of India.

✅ The correct answer is C.
Age is not an event triggering claim. A triggering event is an occurrence which causes a reaction such as an age milestone in life which changes the terms of an insurance contract.

✅ The correct answer is A.
In a group policy, each person is free to choose the amount of insurance cover.

✅ The correct answer is C.
Both the statements are correct: In order to be insurable, a risk must be capable of statistical estimation and In insurance, only economic or financial losses can be compensated.

✅ The correct answer is B.
Insurance agent should not share the commission by way of rebate. This practice is illegal and totally against the laws of Insurance Act and SEBI. The agent can even face cancellation of his license if he is found to share his commission.