Insurance - Study Mode
[#571] Which of the following options are correct?
Correct Answer
(C) Both A & B
(H) All of the above
Explanation
Solution: Notice 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.
[#572] If a policyholder dies within the grace period, then
Correct Answer
(C) The claim is payable after deducting the premium
Explanation
Solution: 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.
[#573] Exclusions in a health insurance policy mean
Correct Answer
(B) Diseases specifically not covered
Explanation
Solution: 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.
[#574] In which of the following types of claim will insurer order an investigation?
Correct Answer
(A) Early death claim
Explanation
Solution: 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.
[#575] In a money back plan, what is the death claim payable?
Correct Answer
(A) Sum insured
Explanation
Solution: 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.