What is a policy withdrawal?
A. Discontinuation of premium payment by policyholder
B. Surrender of policy in return for acquired surrender value
C. Policy upgrade
D. Policy downgrade
Select an option to see the answer and solution.
Which of the below is one of the ways of defining surplus?
A. Excessive liabilities
B. Excessive turnover
C. Excess value of liabilities over assets
D. Excess value of assets over liabilities
Select an option to see the answer and solution.
Which of the below is not a component of ULIP premiums?
A. Policy allocation charge
B. Investment risk premium
C. Mortality charge
D. Social security charge
Select an option to see the answer and solution.
Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of _________.
A. Sum assured chosen by the buyer
B. Type of policy chosen by the buyer
C. Term of the plan chosen by the buyer
D. Mode of payment (cash, cheque, card) chosen by the buyer
Select an option to see the answer and solution.
Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?
A. Lower the interest rate assumed, lower the premium
B. Higher the interest rate assumed, higher the premium
C. Higher the interest rate assumed, lower the premium
D. The interest rates don’t affect premiums
Select an option to see the answer and solution.
With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets.
A. Discounted future value
B. Discounted present value
C. Market value
D. Book value
Select an option to see the answer and solution.
In case of _________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses.
A. Reversionary bonus
B. Compound bonus
C. Terminal bonus
D. Persistency bonus
Select an option to see the answer and solution.
Which of the below is an example of standard age proof?
A. Ration card
B. Horoscope
C. Passport
D. Village Panchayat certificate
Select an option to see the answer and solution.
Which of the below can be attributed to moral hazard?
A. Increased risky behaviour following the purchase of insurance
B. Increased risky behaviour prior to the purchase of insurance
C. Decreased risky behaviour following the purchase of insurance
D. Engaging in criminal acts post being insured
Select an option to see the answer and solution.
Which of the below features will be checked in a medical examiner’s report?
A. Emotional behaviour of the proposer
B. Height, weight and blood pressure
C. Social status
D. Truthfulness
Select an option to see the answer and solution.
A _________ is a formal legal document used by insurance companies that provides details about the product.
A. Proposal form
B. Proposal quote
C. Information docket
D. Prospectus
Select an option to see the answer and solution.
The application document used for making the proposal is commonly known as the
A. Application form
B. Proposal form
C. Registration form
D. Subscription form
Select an option to see the answer and solution.
Money laundering is the process of bringing _________ money into an economy by hiding its _________ origin so that it appears to be legally acquired.
A. Illegal, illegal
B. Legal, legal
C. Illegal, legal
D. Legal, illegal
Select an option to see the answer and solution.
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within _________of receiving the policy document.
A. 60 days
B. 45 days
C. 30 days
D. 15 days
Select an option to see the answer and solution.
Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?
A. The insurance company will refund 100% of the premium
B. The insurance company will refund 50% of the premium
C. The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges
D. The insurance company will forfeit the entire premium
Select an option to see the answer and solution.
Which of the below is not a valid address proof?
A. PAN Card
B. Voter ID Card
C. Bank passbook
D. Driving licence
Select an option to see the answer and solution.
Which of the following documents is an evidence of the contract between insurer and insured?
A. Proposal form
B. Policy document
C. Prospectus
D. Claim form
Select an option to see the answer and solution.
If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed?
A. In favour of insured
B. In favour of insurer
C. The policy will be declared as void and the insurer will be asked to return the premium with interest to the insured
D. The policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest
Select an option to see the answer and solution.
Select the option that best describes a policy document.
A. It is evidence of the insurance contract
B. It is evidence of the interest expressed by the insured in buying an insurance policy from Co
C. It is evidence of the policy (procedures) followed by an insurance company when dealing with channel partners like banks, brokers and other entities
D. It is an acknowledgement slip issued by the insurance company on payment of the first premium
Select an option to see the answer and solution.
Which of the below statement is correct?
A. The proposal form acceptance is the evidence that the policy contract has begun
B. The acceptance of premium is evidence that the policy has begun
C. The First Premium Receipt is the evidence that the policy contract has begun
D. The premium quote is evidence that the policy contract has begun
Select an option to see the answer and solution.