Insurance mcqs

Which of the below group would not be eligible for a group health insurance policy?

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A) Employees of a company
B) Credit card holders of an organisation
C) Professional association members
D) Group of unrelated individuals formed for the purpose of availing group health insurance
✅ ANSWER: D
Group of unrelated individuals formed for the purpose of availing group health insurance would not be eligible for a group health insurance policy.

State which is correct out of the following

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A) A Term Insurance policy cannot be convered into any other policy during its duration
B) Term policy is available both a separate policy and as a rider in another policy
C) Term policy can be issued with lifelong renewability option
D) All Term covers will have a disability rider
✅ ANSWER: B
Term policy is available both a separate policy and as a rider in another policy.

Which of the following is untrue as per IRDA’s regulations on non-par policies?

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A) The benefits shall be stated at the outset
B) The benefits shall be linked to some index
C) The additional benefit under these policies shall be laid out at the outset
D) The return shall be stated at the beginning of the contract itself
✅ ANSWER: B
The benefits of an insurance policy are not linked to any index. Hence, option (2) is the correct answer.

Which of the following is correct? Statement A – Insurance reduces burdens Statement B – Insurance is a system of mutual support. Statement C – Insurance the only method to manage risks.

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A) A is correct
B) B is correct
C) A, B & C correct
D) A & B correct
✅ ANSWER: D
Insurance reduces burdens and Insurance is a system of mutual support. Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

Who is an inpatient seeking medical attention for his medical problem?

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A) He is a patient who receives medical attention without admission in a hospital
B) He is after admission in a hospital receiving medical attention and treatment while being there
C) He is a day care patient for treatment
D) He is a patient in a house receiving care of doctors
✅ ANSWER: B
An inpatient seeking medical attention for his medical problem after admission in a hospital receiving medical attention and treatment while being there.

In order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law?

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A) Premiums must be paid for least 2consecuitve years
B) Premiums must be paid for least 3consecuitve years
C) Premiums must be paid for least 4consecuitve years
D) Premiums must be paid for least 5consecuitve years
✅ ANSWER: B
In order for the policy to acquire a guaranteed surrender value, Premiums must be paid for at least 3 consecuitve years the premium be paid as per law.

Term insurance is mainly suitable for which of the following needs?

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A) Tax planning
B) Savings
C) Disease
D) Income replacement
✅ ANSWER: D
Term insurance is mainly suitable for income replacement.
Under regular term plans, the amount is paid as lump sum in the event of death of the policyholder. Under income replacement term plans, the sum assured is not paid in lump sum, but as monthly payout for a fixed number of years. This monthly payout takes away the pressure to generate income from your investment.

What are the correct statements?

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A) Bancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation
B) Such an agency of bank acting for an insurer is known as corporate agency
C) A commercial bank is not barred from acting as an agent for insurance companies
D) All of the above
✅ ANSWER: D
All the statements are correct.
Bancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation, Such an agency of bank acting for an insurer is known as corporate agency and A commercial bank is not barred from acting as an agent for insurance companies.

Which is not an appropriate reason for a proper financial planning?

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A) Break-up of joint family system
B) Changing lifestyle
C) Underwriting
D) Change in behavioral pattern
✅ ANSWER: C
Underwriting is not a reason for proper financial planning. Underwriting services are provided by some large financial institutions, such as banks, or insurance or investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee.