Insurance - Study Mode
[#556] Contingency products typically address which type of need?
Correct Answer
(B) Against uncertainties
Explanation
Solution: Contingency products typically address against uncertainties. A contingency is a potential negative event that may occur in the future, such as an economic recession, natural disaster, fraudulent activity or a terrorist attack.
[#557] At young age, one tends to be
Correct Answer
(B) Aggressive
Explanation
Solution: At young age, one tends to be aggressive. It means behaving in an angry and violent way towards another person.
[#558] Which of the following is incorrect? (i) - The longer the period of investment, the more they will multiply. (ii)– The lesser the period of investment, the greater they will multiply.
Correct Answer
(B) Statement (ii)
Explanation
Solution: The lesser the period of investment, the greater they will multiply is incorrect because if period of investment will be less, the result will also be less.
[#559] In which event(s) does availing cashless facility not require a pre-authorisation from the insurer/TPA?
Correct Answer
(C) Both A & B
Explanation
Solution: A third-party administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. Reimbursement of the hospitalization expenses can be claimed where cashless hospitalization facility is not availed or treatment is availed in a non-network hospital. In that case the pre-authorisation is not required. The customer would need to settle the bills at the hospital and submit the documentation in attestation within 30 days from the date of discharge. In case of emergencies, cashless facility does not require pre-authorisation for the conduct of treatment in a hospital. After the patient is admitted, the hospital fax the pre-authorisation to the TPA.
[#560] Non-traditional products involved shift from traditional products in terms of
Correct Answer
(D) All of the above
Explanation
Solution: As the limitations of traditional life insurance plans became obvious, a number of shifts occurred in the product profiles of life insurers. These have been summarised below: (a) Unbundling: This trend involved separation of the protection and savings elements, and consequently the development of the products which stressed on protection of savings, rather than a vague mix of both. (b) Investment linkage: The second trend was the shift towards investment linked products which linked benefits to policyholders with an index of investment performance. There was consequently a shift in the way life insurance was positioned. (c) Transparency: Unbundling also ushered greater visibility in the rate of return and in the charges made by the companies for their services (like expenses, etc.). All these were explicitly spelt out and thus, could be compared. (d) Non-standard products: The fourth major trend has a shift from rigid to flexible product structures which is also seen as a move towards non-standard products. When we speak of non-standard, it is with respect to the degree of choice which a customer can exercise with respect to designing the structure and benefits of the policy.