Insurance - Practice Test | ExamPrepSheets

[#561] What will happen if the insured person loses the original life insurance policy document?

(A) The insurance company will issue a duplicate policy without making any changes to the contract

(B) The insurance contract will come to an end

(C) The insurance company will issue a duplicate policy with renewed terms and conditions based on the current health declarations of the life insured

(D) The insurance company will issue a duplicate policy without making any changes to the contract, but only after a court order

Correct Answer

(A) The insurance company will issue a duplicate policy without making any changes to the contract

Explanation

Solution: If the insured person loses the original life insurance policy document the insurance company will issue a duplicate policy without making any changes to the contract. If you lose your policy bond, report it to the insurance company immediately. Get a duplicate policy by complying with the formalities. The duplicate policy confers the same rights as the original policy bond.

[#562] Amount of annuity payable is inversely related to which of the following?

(A) Principal sum of money

(B) Investment period

(C) Rate of return

(D) Duration of annuity payments

Correct Answer

(D) Duration of annuity payments

Explanation

Solution: Amount of annuity payable is inversely related to duration of annuity payments. Usually, the time period is 1 year, which is why it is called an annuity, but the time period can be shorter, or even longer. These equal payments are called the periodic rent. The amount of the annuity is the sum of all payments.

[#563] The definition for ‘hospital’ does not envisage which of the following?

(A) 5 inpatient beds in towns with a population of < 10 lakh and 10 beds in other places

(B) Qualified medical practitioner round the clock

(C) Fully-equipped operation theatre

(D) Daily records of patients to be maintained

Correct Answer

(A) 5 inpatient beds in towns with a population of < 10 lakh and 10 beds in other places

Explanation

Solution: Hospital is an institution in which sick or injured persons are given medical or surgical treatment by professional doctors. Therefore, according to the definition of hospital, the first option is not correct and the rest are correct.

[#564] Term insurance possesses which of the following properties?

(A) Savings benefit

(B) Death benefit

(C) Maturity benefit

(D) Bonus benefit

Correct Answer

(B) Death benefit

Explanation

Solution: Term insurance plan is pure risk cover which pays out the sum assured in case of death and does not have any maturity benefits. You do not get any maturity benefits in a pure term plan because it is a pure protection insurance plan.

[#565] Which of the following statements is incorrect in case of a non-medical case?

(A) In a non-medical case, risk cannot be assessed in the absence of medical report

(B) Risk assessment is possible in a non-medical proposal

(C) More than 90% of people who submit proposals on their lives are accepted at ordinary rates

(D) In preferred lives, the level of anticipated mortality is likely to be lower than evenxa0standard lives

Correct Answer

(A) In a non-medical case, risk cannot be assessed in the absence of medical report

Explanation

Solution: In a non-medical case, risk can be assessed in the absence of a medical report.xa0No medical report is required in a non-medical case.

Insurance - Study Mode

[#561] What will happen if the insured person loses the original life insurance policy document?

Correct Answer

Explanation

[#562] Amount of annuity payable is inversely related to which of the following?

Correct Answer

Explanation

[#563] The definition for ‘hospital’ does not envisage which of the following?

Correct Answer

Explanation

[#564] Term insurance possesses which of the following properties?

Correct Answer

Explanation

[#565] Which of the following statements is incorrect in case of a non-medical case?

Correct Answer

Explanation