IC02 (LICENTIATE) Practice of Life Insurance - 15

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Q1.Why is churning bad in insurance?
Policyholders suffer due to surrender charges and benefits
Policyholders get more benefits
 Agents earn lower commission on churning
 Insurance companies get good branding
 Churning allows insurance companies to make more profits
 
Q2.A favorably performing market can contribute to increasing ____.
 Net incurred claims
 Investment income
 Expenses of management
 Net earned premiums
 All of the above
 
Q3.Mr. Surendra purchased a flat costing Rs 4 crore. He has taken a housing loan for it. As an insurance advisor, which Insurance product would you suggest for him?
 Medi-claim policy
 Whole life assurance plan
 Accident cover insurance
Money-back assurance
 Mortgage insurance plan or Term assurance plan
 
Q4.In ___ insurance policy, a partial amount of the sum assured is paid back in single or multiple Installments.
 Full cover
 ULIPs
 Premium back
 Endowment
 Money back
 
Q5.Insurance premiums that are calculated after taking into account the interest likely to be earned are called __.
 Raw premium
 Net premium
 Base premium
 Tabular premium
 Level premium
 
Q6.____ employs selected doctors and hospitals in exchange for a fixed premium.
 Larceny
Health maintenance organization
 Fidelity bond
 Health insurance
 Preferred provider organization
 
Q7.Breach of duty of utmost good faith can be categorized into __.
Nondisclosure
 Fraudulent misrepresentation
 Concealment
 All of above
 None of above
 
Q8.If the tabular premium is Rs 55.60, calculate the half-yearly premium amount for a sum assured of Rs. 3 lakhs along with added benefits of Double accident benefit and Extended Permanent Disability benefit at an additional premium of Rs 1.60 sum assured
 Rs 8500
 Rs 8580
 Rs 8470
 Rs 8690
 Rs 8600
 
Q9.A person is not able to pay a premium of his policy. Besides surrendering the policy, what is another option available?
The policy will be subject to lien
On maturity, the sum assured will be paid after deducting the unpaid premiums
The policy will be canceled and the premiums paid will be returned on maturity
Change the policy to paid-up status and the reduced Sum assured
 Premiums paid will be returned on maturity
 
Q10.The ___ type of plans promise payment of part of the sum assured at intervals, during the life of the policy.
 Money back
 Unit linked
 Endowment
 Retirement
Equity-linked
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