Insurance mcqs

✅ The correct answer is D.
Risk Avoidance, Risk Retention and Risk Reduction are the methods to manage risks. There are four main ways to manage risk: risk avoidance, risk transfer, risk reduction and risk retention. Each is applicable under different.

✅ The correct answer is B.
A policy taken with critical illness rider benefit is being assigned. Conditional assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim.

✅ The correct answer is D.
The assured does not have to approach a competent court of law and obtain an order directing the insurer to issue a duplicate policy.

✅ The correct answer is D.
Under Variable life insurance, if the cash value became zero, the policy would Terminate. Variable life insurance is a permanent life insurance product with separate accounts comprised of various instruments and investment funds, such as stocks, bonds, equity funds, money market funds, and bond funds.

✅ The correct answer is A.
Working in a ration shop is not an hazardous occupation of moral hazard from a job.

✅ The correct answer is D.
A deferred payment annuity allows the investment, known as the premium, to grow both by contributions and interest before payments are initiated. A deferred payment annuity is also known as a “deferred annuity” or a “delayed annuity.”

✅ The correct answer is D.
Minor nominee could not be a claimant under a policy.

✅ The correct answer is A.
Splitting up of the policy into two or more policies will be permitted by an insurance company.

✅ The correct answer is A.
Agent’s report is always compulsory in insurance.

✅ The correct answer is C.
Misrepresentation and non-disclosure constitute breach of utmost good faith. In an insurance policy, misrepresentation on the behalf of the insured gives the insurance company a right to terminate the policy. Non-disclosure means failure to divulge a relevant fact when applying for an insurance policy. This is a violation of the principle of good faith which should be observed in insurance negotiations.