Q-11- Which of the following is not a traditional type of product offered by insurance companies?
- ULIP
- Whole life plan
- Endowment plan
- Moneyback plan
Option-1 ULIP is a life insurance product which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.
Q-12- Which of the following is incorrect with regards to portfolio method?
- This method gives homogenized rates of return
- The total investment return is shared between policyholders
- No attempt is made to distinguish between investments of previous years over current investments
- none of above
Option-1 All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.
Q-13- Traditional cash value plans are also known as
- ULIP
- Annuity
- Bundled Plans
- Unbundled Plans
Option-3 Traditional cash value plans are also known as Bundled plans. Bundled plans consist of multiple types of health coverage that a consumer can purchase together, typically with one integrated premium. The plans are generally designed to complement each other, or to provide varying benefits.
Q-14- In a standard insurance policy document, the standard provisions section will have information on which of the following?
- Name of the nominee
- The signature of the authorized signatory and policy stamp
- Date of commencement, date of maturity and due date of last premium
- The rights and privileges and other conditions which are applicable under the contract
Option-4 In a standard insurance policy document, the standard provisions section will have information on the rights and privileges and other conditions which are applicable under the contract.
Q-15- _________ is an annuity with an infinite life and continuous annual payments.
- APR
- Principal
- Perpetuity
- Amortized loan
Option-3 Perpetuity is an annuity with an infinite life and continuous annual payments. As the name suggests, perpetuity is a bond or security with no fixed maturity date.
Q-16- For a Family health coverage Floater is always a better option rather than non-floater due to
- Higher cover would help any family member in case of high cost treatment
- Premiums are considerably lower than where cover is taken for individual members
- Both above
- None of above
Option-3 It would be advantageous to go for a family floater rather than non-floater due to the reason that higher cover would help any family member in case of high cost treatment and premiums are considerably lower than where cover is taken for individual members.
Q-17- Which of the following statements is correct?
- Chances of risk are reduced by retention of risk
- Loss prevention is nothing but retention of risk
- Risk prevention aims at avoidance of loss through insurance
- Chances of occurrence of risk are achieved through transfer of such risks
Option-3 Risk prevention aims at avoidance of loss through insurance. Insurance helps minimize the negative impacts of losses.
Q-18- When an underwriter has to be very careful?
- When Premium is low
- When Premium is high
- When Sum insured is low
- When Sum insured is high
Option-4 As underwriter should be very careful while writing a policy having high or large sum insured.
Q-19- Who is consider as a primary underwriter or field underwriter?
- Agent
- Insured
- Insurer
- Branch manager
Option-1 An agent is considered as a primary underwriter, as he/she is the person who first interact with the prospect with intention to sale of insurance product.
Q-20- In traditional life insurance policies, the investment risk is borne by the _________, while in unit linked plans, the investment risk is borne by the _________.
- Policyholder, insurer
- Policyholder, unit holder
- Insurance company, unit holder
- Insurance company, insurance company
Option-3 In traditional life insurance policies, the investment risk is borne by the insurance company, while in unit linked plans, the investment risk is borne by the unitholder.
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