Insurance mcqs

✅ The correct answer is B.
An insurance agent is a representative of insurance company. Such agents are required to be licensed in the states in which they do business as well as with the specific companies they represent. In contrast to an insurance agent, an insurance broker represents a client.

✅ The correct answer is C.
Before the composite licence could be renewed, the applicant needs to undergo renewal training of 35 hours from an approved institution.

✅ The correct answer is A.
Primary burden of risk can easily be compensated thro’ insurance. The primary burden of risk consists of losses that are actually suffered by households (and business units), as a result of pure risk events. These losses are often direct and measurable and can be easily compensated for by insurance.

✅ The correct answer is C.
Accumulation & Payout phases are the 2 distinct phases of a Deferred Annuity. There are two phases for a deferred annuity: the accumulation or deferral phase in which the customer deposits (or pays premiums) and accumulates money into an account; the distribution or annuitization phase in which the insurance company makes income payments until the death of the annuitants named in the contract.

✅ The correct answer is C.
The surplus in an insurance company is a function of how Assets & Liabilities are valued. Surplus is also known as net worth or the difference between the market value of assets and the present value of the liabilities and their relationship.

✅ The correct answer is A.
Money laundering is the process of bringing illegal money into an economy by hiding its illegal origin so that it appears to be legally acquired.

✅ The correct answer is B.
State Commission would handle consumer disputes amounting between Rs. 20 lakhs and Rs. 100 lakhs.

✅ The correct answer is D.
If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004, Section 45 of the Act will not apply, The claim can be treated as an early claim and Foul play must be suspected.

✅ The correct answer is C.
Falling off a horse is the proximate cause for death in the given scenario.

✅ The correct answer is B.
Under the loan cum revival, the loan granted would be used as a consideration amount and balance only payable.