Insurance MCQ Questions and Solutions with Explanations

81

Which of the below death claim will be treated as an early death claim?

A) If the insured dies within three years of policy duration B) If the insured dies within five years of policy duration C) If the insured dies within seven years of policy duration D) If the insured dies within ten years of policy duration

Discuss

Answer & Solution

Answer: Option A

Solution:

If the insured dies within three years of policy duration will be treated as an early death claim. If the life assured dies during the term of the policy, the death claim arises. If the death has taken place within the first two years of the commencement of the policy, it is called an early death claim and if the death has taken after 2 years, it is called a non early death claim.

82

Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect?

A) Claim paid on maturity of a term insurance policy B) An instalment payable upon reaching the milestone under a money-back policy C) Claim paid for critical illnesses covered under the policy as a rider benefit D) Surrender value paid on surrender of an endowment policy by the policyholder

Discuss

Answer & Solution

Answer: Option A

Solution:

Claim paid on maturity of a term insurance policy will trigger survival claims. The payment by the insurer to the insured on the date of maturity is called maturity payment. The amount payable at the time of the maturity includes a sum assured and bonus/incentives, if any.

83

A payment made under a money-back policy upon reaching a milestone will be classified under which type of claim?

A) Death claim B) Maturity claim C) Periodical survival claim D) Surrender claim

Discuss

Answer & Solution

Answer: Option C

Solution:

A payment made under a money-back policy upon reaching a milestone will be classified under Periodical survival claim.

84

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?

A) Premiums paid will be returned with 2% higher interest rate as compared to a bank’s savings deposit B) Lower of sum assured or fund value C) Surrender value D) None of the above

Discuss

Answer & Solution

Answer: Option B

Solution:

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.

85

Based on classification of claims (early or non-early), pick the odd one out?

A) Ramya dies after 6 months of buying a term insurance plan B) Manoj dies after one and half years of buying a term insurance plan C) David dies after two and half years of buying a term insurance plan D) Pravin dies after five and half years of buying a term insurance plan

Discuss

Answer & Solution

Answer: Option D

Solution:

Pravin dies after five and half years of buying a term insurance plan, is the odd one among all. In other three cases death occurs within 3 years.

86

Applicant shall complete _________ hours training to become an insurance agent.

A) 50 B) 100 C) 30 D) 25

Discuss

Answer & Solution

Answer: Option A

Solution:

Applicant shall complete 50 hours training to become an insurance agent. Licence to work as an insurance agent is issued by the IRDA. Agent‟s licence is to be renewed every three years.

87

Identify the statement which is not correct. Insurance agent should _________.

A) Indicate the scale of commission if asked by the customer B) Share the commission by way of rebate C) Disclose his licence on demand D) Indicate the premium to be charged

Discuss

Answer & Solution

Answer: Option B

Solution:

Insurance agent should not share the commission by way of rebate. This practice is illegal and totally against the laws of Insurance Act and SEBI. The agent can even face cancellation of his license if he is found to share his commission.

88

The Authority may issue duplicate licence in case it is _________.

A) Lost B) Destroyed C) Mutilated D) All of the above

Discuss

Answer & Solution

Answer: Option D

Solution:

The Authority may issue duplicate licence in case it is lost, destroyed or mutilated.

89

Minimum qualification required for insurance agent is _________ pass.

A) Graduate B) 10th C) Post-graduate D) 7th

Discuss

Answer & Solution

Answer: Option B

Solution:

Minimum qualification required for insurance agent is 10th pass.

90

Direct marketing involves which of the below?

A) Telemarketing B) Insurance agents C) Bancassurance D) All of the above

Discuss

Answer & Solution

Answer: Option D

Solution:

Direct marketing involves Telemarketing, Insurance agents, Bancassurance, etc.

Insurance MCQ Questions and Solutions with Explanations | Commerce