Insurance mcqs

Which is incorrect?

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Special reports like ECG, EEG, Chest x-ray reports etc are called for in large sums proposed and where the ages of the proposers are higher than otherwise
First insurance at age of 50 for a large sum proposed is a sign of moral hazard
Family history has no role in risk assessment
If there is no relationship between the proposer’s income and the sum proposed moral hazard is suspected
✅ The correct answer is C.
Family history plays a critical role in assessing the risk of inherited medical conditions and single gene disorders. Several methods have been established to obtain family medical histories, including the family history questionnaire or checklist and the pedigree.

Which of the following statement is correct?

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Endowment assurance has no saving element
Whole Life Plan has no saving element at all
Term Insurance has little or no saving element
Money Back plan has no savings element
✅ The correct answer is C.
Term Insurance has little or no saving element. In term policies if you stop paying the premium the risk cover ceases and the policy ends. Nothing is payable to you as there is no savings element in the policy.

Identify the term of insurance that is depicted in the following scenario. Scenario: patient pays the health provider and is subsequently reimbursed by the health insurance company.

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Service Benefit
Direct Contracting
Indemnity
Casualty
✅ The correct answer is C.
Indemnity insurance protects against claims arising from possible negligence or failure to perform that result in a client’s financial loss or legal entanglement.

What is correct in the following sentences?

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Claim is a demand on the insurer to honour contractual commitment to pay the policy money to the claimant
It s request made to the insurer by the claimant to settle payment
While in some claims, the contract comes to an end with payment in other cases the contract continues
All of the above
✅ The correct answer is D.
All the above statements are correct.
Claim is a demand on the insurer to honour contractual commitment to pay the policy money to the claimant, It s request made to the insurer by the claimant to settle payment and While in some claims, the contract comes to an end with payment in other cases the contract continues.

Shankar bought a 10 year Unit Linked Insurance Plan. If he dies before the maturity of the policy which of the below will be paid?

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Lower of sum assured or fund value
Lower of sum assured or fund value
Premiums paid will be returned with 2% higher interest rate as compared to a bank’s savings deposit
Surrender value
✅ The correct answer is B.
Shankar bought a 10 year Unit Linked Insurance Plan. If he dies before the maturity of the policy lower of sum assured or fund value will be paid.

In a standard insurance policy document, the standard provisions section will have information on which of the following?

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Date of commencement, date of maturity and due date of last premium
Name of the nominee
The rights and privileges and other conditions which are applicable under the contract
The signature of the authorized signatory and policy stamp
✅ The correct answer is C.
In a standard insurance policy document, the standard provisions section will have information on the rights and privileges and other conditions which are applicable under the contract.