Insurance - Study Mode

[#511] Section 45 of Insurance Act, 1938 speaks about rejecting a claim after _________ of taking a policy.
Correct Answer

(B) 3 years

Explanation

Solution: Section 45 of Insurance Act, 1938 speaks about rejecting a claim after 3 years of taking a policy.

[#512] In group insurance, risk of individuals is not assessed.
Correct Answer

(A) TRUE

Explanation

Solution: In group insurance, risk of individuals is assessed in a group. Hence, the given statement is true.

[#513] Which of the following statements are correct? i. The sum assured under group insurance is not fixed by the individual member. ii. A person whose proposal is declined under individual scheme can get insurance under group policy.
Correct Answer

(A) Statement i is correct

Explanation

Solution: If a person's proposal is declined under individual scheme, he cannot get insured even under the group policy. Hence, only statement A is correct.

[#514] A policy can be surrendered only if it has acquired
Correct Answer

(D) Paid-up value

Explanation

Solution: A policy can be surrendered only if it has acquired paid-up value. In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.

[#515] Which actuarial aspect(s) are taken into account while fixing the premium? I. Mortality II. Interest assumption III. Office expenses
Correct Answer

(A) Only I

Explanation

Solution: Mortality is taken into account while fixing the premium.