Q-11- Which of the following statements is correct?
- Ethical behavior is impossible while selling insurance
- Ethical behavior is not necessary for insurance agents
- Ethical behavior is expected from the top management only
- Ethical behavior helps in developing trust between the agent and the insurer
Option-4 Ethical behavior helps in developing trust between the agent and the insurer. In the trusting relationship, the prospect allocates trust insofar as they found the conduct of the agent as credible and reliable.
Q-12- Which of the following options is correct regarding Life Insurance?
- Life insurance selling is different from selling other items
- Life insurance involves concept of selling and hence, is challenging
- An agent has to create, in his client’s mind, a need for life insurance
- All of above
Option-4 All of the above are correct regarding Life Insurance.
Q-13- The dividends declared under contribution method can be
- Paid by cash or by reducing future premiums
- Allowed to purchase non-forfeitable paid up additions
- Accumulated with interest to be withdrawn at the option of the policy holder
- None of above
Option-4 The dividends declared under contribution method cannot be any of the above.
Q-14- Prospecting in an insurance sale is
- Preparing a list of all the persons in a city
- Enlisting all the policyholders of a branch office
- Preparing a list of all the agents in a neighborhood
- Gathering the names of people who may be interested in insurance
Option-4 Prospecting in an insurance sale is gathering the names of people who may be interested in insurance.Prospecting is the process of gathering names of people who can be approached for a sales interview.
Q-15- In which plan, medical examination is not required?
- Endowment
- Term assurance
- Group insurance
- Pure endowment
Option-1 In Endowment plan of insurance medical examination is never required.
Q-16- In a money back plan, what is amount of claim payable on Death?
- Bonus
- Sum Insured
- Sum insured less survival benefits paid already
- None of above
Option-2 In a money back plan, Sum insured is the death claim payable. Money-back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.
Q-17- In which of the following types of claim will insurer might order for an investigation?
- untimely claim
- Matured claim
- early death claim
- higher claim amount
Option-1 In early death claim insurer order an investigation. Several situations can result in later payment of a claim. If the insured died within the first one to two years after the policy was issued, beneficiaries could face delays of six to 12 months. The reason: the one- to two-year contestability clause, says Huntley. “Most policies contain this clause, which allows the carrier to investigate the original application to ensure fraud was not committed.
Q-18- What do you mean by exclusions in Health Insurance policy?
- Details of diseases or conditions which are specifically covered
- Details of diseases or conditions which are specifically not covered
- Both above
- None of above
Option-2 Exclusions in a health insurance policy mean diseases specifically not covered. An exclusion is a provision within an insurance policy that eliminates coverage for certain acts, property, types of damage or locations.
Q-19- If a policyholder dies within the grace period, then
- The claim will be rejected
- The claim will be paid subject to policy conditions
- The claim is payable after deducting the premium
- None of the above
Option-3 If a policyholder dies within the grace period, then the claim is payable after deducting the premium. As per the rules, if the death of the policy holder occurs on the due date of the premium payment or during the grace period, still the policy is valid and the beneficiaries will get the sum assured. But after deducting the the unpaid premium for the current year.
Q-20- Which of the following options are correct?
- Notice of assignment has to be given to the insurer
- Notice of nomination has to be given to the insurer
- Both above
- None of above
Option-3Notice of assignment and notice of nomination have to be given to the insurer. Transfer by the holder of a life insurance policy (the assignor) of the benefits or proceeds of the policy to a lender (the assignee), as a collateral for a loan. In the event of the death of the assignor, the assignee is paid first and the balance (if any) is paid to the policy’s beneficiary.
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