Insurance - Study Mode
[#591] Which of the below insurance proposal is not likely to qualify under non-medical underwriting?
Correct Answer
(B) Mahesh, aged 50 years, working in a coal mine
Explanation
Solution: Mahesh, aged 50 years, working in a coal mine is not likely to qualify under non-medical underwriting.
[#592] Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use _________ for underwriting. Choose the most appropriate option.
Correct Answer
(A) Judgment method
Explanation
Solution: Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use Judgment method for underwriting. The judgment method is generally used where a single factor is to be considered or where the decision for acceptance or rejection is to be taken.
[#593] Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under _________.
Correct Answer
(B) Preferred risks
Explanation
Solution: Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims. Therefore, insurance companies prefer it over a standard or higher risk because the former represent a better chance to make more profit. For the insurer, fewer claims equates to more money taken in and less money paid out.
[#594] Given below is a list of policies. Identify under which type of policy, the claim payment is made in the form of periodic payments?
Correct Answer
(A) Money-back policy
Explanation
Solution: In money-back policy, the claim payment is made in the form of periodic payments. Money back plan simply means that money comes back to the life insured after a specific interval of time as survival benefit. The money back is guaranteed on the survival of the policyholder. However, in case of death of the policyholder, the nominee gets the sum assured and accrued bonuses, if any.
[#595] Praveen died in a car accident. The beneficiary submits documents for a death claim. Which of the below document is an additional document required to be submitted in case of accidental death as compared to natural death?
Correct Answer
(D) Inquest Report
Explanation
Solution: Inquest Report document is an additional document required to be submitted in case of accidental death as compared to natural death. In general, a court inquiry (sometimes with the aid of specially chosen jury) into a specific matter. In particular, an inquiry by a coroner into the death of person who died under suspicious circumstances or in police custody.