Insurance MCQ Questions and Solutions with Explanations | Commerce

Non-medical underwriting is resorted to save on cost of conducting medical exam. Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process.

Non-medical underwriting several conditions are to be followed. Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process.

Under Non-medical underwriting, Limit in income is not a condition to be followed.

Characteristics of an individual which impact on risk (hazards) is classified into Physical and moral hazard.
Physical hazards indicate those dangers of the subject matter of insurance which can be ascertained or identified by mere inspection of the risk.
Moral hazard indicates those dangers which relate to character, integrity and mental attitude of the insured.

Women have significantly Greater longevity than men. Women live longer than men and this difference in life expectancy is a worldwide phenomenon indicating that human longevity seems strongly influenced by gender defined as the combination between biological sexual characteristics (anatomy, reproductive functions, sex hormones, expression of genes on the X or Y chromosome) and factors related to behaviour, social role, lifestyle and life experiences.

When the age is advanced and large sum insured disproportionate to income moral hazard could be suspected.

When high sum insured is proposed and when age is advanced special reports would be necessary.

A proposer with many dependents taking insurance is not a moral hazard. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other.

Occupational hazards could emanate from Accident at work place, health problems and moral hazard in a job.

Working in a ration shop is not an hazardous occupation of moral hazard from a job.