Insurance mcqs

✅ The correct answer is D.
Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.

✅ The correct answer is A.
Survey and inspection of a property is essential before the acceptance of risk to assess the risk for rating purpose. A survey is an inspection of a property.

✅ The correct answer is A.
Previous policy particulars information is not contained in a Medical Examiner’s Report.

✅ The correct answer is D.
Mutuality means flow of resources from many to one. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio.

✅ The correct answer is D.
Excess value of assets over liabilities is one of the ways of defining surplus. A surplus is an excess of total assets over total liabilities. The trade surplus is likely to persist, and reserve assets, after all, are generating interest incomes. A pension fund has a surplus when its assets exceed its obligations to current and future pensioners.

✅ The correct answer is B.
The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

✅ The correct answer is D.
All the statements are incorrect.
Complainant does not have to approach a consumer forum before moving the Ombudsman, The complaint has to be lodged immediately of the insurer rejecting the compliant and There is a separate financial limit of various forum and commissions.

✅ The correct answer is D.
RBI decides Repo Rate. Repo rate is the rate at which RBI lends to its clients generally against government securities. Reduction in repo rate helps the commercial banks to get money at a cheaper rate and increase in repo rate discourages the commercial banks to get money as the rate increases and becomes expensive.

✅ The correct answer is B.
Section 45 of Insurance Act, 1938 speaks about rejecting a claim after 3 years of taking a policy.

✅ The correct answer is A.
Anti-selection means Tendency of people who expect loss to take insurance eagerly leading to loss to the insurer. Anti-selection is the tendency of people, who suspect or know that their chance of experiencing a loss is high, to seek out insurance eagerly and to gain in the process.