Insurance mcqs

State which is incorrect statement

by
A) Life Insurance agents desirous of doing stand alone Health insurance business will have to be certified under IC-34 separately
B) Such life agents as above are exempt from passing IC-34 if they have been certified under IC-33 and if they undergo some internal training for 25 hours given by Health Insurance Company
C) Agents certified under IC 34 for non life insurer can do standalone Health insurance business after undergoing internal training for 25 hrs from the standalone health insurance company
D) No agent, individual or corporate of life and or non-life insurer shall offer his services to more than one standalone health insurance Company
✅ ANSWER: A
Term insurance can be bought as a stand -alone policy as well as a rider with another policy.

Savings can be considered as a composite of two decisions. Choose them from the list below.

by
A) Risk retention and reduced consumption
B) Gifting and accumulation
C) Spending and accumulation
D) Postponement of consumption and parting with liquidity
✅ ANSWER: D
Savings can be considered as a composite of Postponement of consumption and parting with liquidity.
Postponement of consumption: an allocation of resources between present and future consumption.
Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.

A loan-cum revival would mean –

by
A) Granting a loan
B) Revival of the policy
C) Both A & B
D) None of the above
✅ ANSWER: C
A loan-cum revival would mean Granting a loan and Revival of the policy. If a policy acquires the surrender value, the date of the policy can be revived by a policy loan. The loan amount will be calculated and treated as premiums paid upto the date of the revival. If a loan amount is more than the required revival, the excess will be paid to the policyholder.

What is the primary purpose of a life insurance product?

by
A) Tax rebates
B) Safe investment avenue
C) Protection against the loss of economic value of an individual’s productive abilities
D) Wealth accumulation
✅ ANSWER: C
Protection against the loss of economic value of an individual’s productive abilities is the primary purpose of a life insurance product. The primary purpose for purchasing life insurance is to provide financial stability to beneficiaries in the event of the insured’s death.

Identify the correct statement

by
A) Bonus is not allowed on surrender of a policy
B) In compound reversionary bonus it is a percentage of basic benefit and already attached bonus
C) Terminal bonus and compound bonus are one and the same
D) Persistence bonus is allowed by the insurer at its discretion in certain cases
✅ ANSWER: B
In compound reversionary bonus it is a percentage of basic benefit and already attached bonus. Compound reversionary bonuses are a percentage rate, which apply to the sum assured in respect of the basic policy benefit, and to the reversionary bonuses already attached to the policy. The difference is in the way the bonuses are accrued.