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Examveda

Which of the following is not a risk fit for insurance?

A. Early death

B. Early death in an accident

C. Disability

D. Natural wear and tear to an asset

Answer: Option D

Solution(By Examveda Team)

Natural wear and tear to an asset is not to be included in insurance. A wear and tear exclusion states that the normal, expected deterioration of the insured object will not be covered by an insurance policy.

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Related Questions on Insurance

Which of the following statements is correct?

A. In group insurance, a single policy is issued covering many persons

B. In group insurance, a single policy is issued covering many persons

C. Both the statements above are correct

D. Both the statements above are wrong

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

Which is correct?

A. It is easy to know cash value and savings value components in a traditional plan

B. In a traditional life insurance it is not easy to ascertain the rate of return

C. Surrender value can easily be arrived at in such policies

D. Rate of return is always high in such policies