Which of the following are correct?
A. If dispute is not settled through mediation, Ombudsman will pass an award within 3 months of receipt of the compliant
B. If the award is acceptable to the insured, it is binding on the insurer to implement the award
C. If the insured does not accept the award, it is not implementable at insurer's level
D. All of the above
Select an option to see the answer and solution.
If there is any delay in settlement of claim within 30 days, other than an early claim, the insurer has to pay _________ rate of interest.
A. Savings bank account
B. Bank interest + 2%
C. 5.00%
D. 10%
Select an option to see the answer and solution.
Which of the following are true? I. Insurance is necessary to cover the risk of living too long. II. Insurance helps one to be less dependent on others.
A. Only I
B. Only II
C. Both I and II
D. Neither I nor II
Select an option to see the answer and solution.
When would special reports be necessary?
A. When high sum insured is proposed
B. When age is advanced
C. Both A & B
D. Special reports are not necessary in any case
Select an option to see the answer and solution.
Identify the correct option(s).
A. Revival of a lapsed policy is subject to certain conditions as set out by the underwriter
B. Revival of a lapsed policy cannot increase the risk for the insurer
C. Fresh medical examination report is not always required for revival of a lapsed policy
D. All of the above
Select an option to see the answer and solution.
In respect of payment of Reversionary Bonuses, which of the following is incorrect?
A. Payable on maturity
B. Payable on death
C. Both A & B
D. Payable at any time during the term of a policy
Select an option to see the answer and solution.
Why does an officer conduct special enquiry in the case of death claim which arose after 4 years?
A. On suspicion of suppression of facts
B. As a precaution
C. As a routine
D. For large sum assured
Select an option to see the answer and solution.
Which of the following statements is incorrect?
A. An agent licenced to act as such for an insurer is required to have a licence under Section 42 of the Insurance Act, 1938 for procuring and continuing insurance business against payment of commission
B. An agent can only be a trained individual for working for an insurance company
C. A bank can also act as a broker for life insurance business
D. None of the three
Select an option to see the answer and solution.
_________ may deal with more than one life insurance company or general insurance company or both.
A. An agent
B. A surveyor
C. A composite agent
D. None of the three
Select an option to see the answer and solution.
The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of
A. Original loan
B. Outstanding loan plus interest
C. Outstanding loan
D. Installment due to be repaid within the next one year
Select an option to see the answer and solution.
If the proponent has no insurable interest in the insured, the underwriter will
A. Accept with reduced sum assured
B. Reject the proposal
C. Accept with lien
D. Accept with extra premium
Select an option to see the answer and solution.
Which of the following statements is correct?
A. Policyholder cannot earn market rate of interest on his cash value
B. In universal life plan, policyholder can vary payments of premium
C. Universal life plan is a traditional plan of assurance
D. Variable life insurance is a temporary plan of insurance
Select an option to see the answer and solution.
Which of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?
A. Young people are mostly dependent
B. Old people can afford to pay more
C. Mortality is related to age
D. Mortality is inversely related to age
Select an option to see the answer and solution.
Which is true of Current Money method of dividend payment?
A. Returns depend on when the investment was made
B. Different investment blocks get different returns
C. It is also called segmented or investment block method
D. All of the above
Select an option to see the answer and solution.
In ULIPs, the result of policy allocation charge would be that _________ amount would be allocated for investment in units.
A. More
B. Less
C. High
D. Any of the above
Select an option to see the answer and solution.
In which type of products were protection and saving elements separated?
A. Traditional cash value plans
B. Non-traditional plans
C. Both A & B
D. None of the above
Select an option to see the answer and solution.
Which of the following statements is correct?
A. The policy document has to be signed by a competent authority, but need not be compulsorily stamped according to the Indian Stamp Act
B. The policy document has to be signed by a competent authority and should be stamped according to the Indian Stamp Act
C. The policy document need not be signed by a competent authority, but should be stamped according to the Indian Stamp Act
D. The policy document neither needs to be signed by a competent authority nor it needs to be compulsorily stamped according to the Indian Stamp Act
Select an option to see the answer and solution.
Which of the following statements best describes an ordinary annuity?
A. Equal cash flows at equal time intervals forever
B. Equal cash flows at equal time intervals for a specific time period
C. Lumpy cash flows at equal time intervals forever
D. Lumpy cash flows at equal time intervals for a specific time period
Select an option to see the answer and solution.
What is the special feature of a Family Floater policy?
A. The total sum insured floats amongst the family members
B. Husband/wife, children and parents/parents-in-law can be covered
C. Both A & B
D. None of the three
Select an option to see the answer and solution.
Which special feature of Unit Linked Policy allowed change from one fund to another?
A. Transfer
B. Switching
C. Assignment
D. Loan
Select an option to see the answer and solution.