Insurance - Study Mode

[#606] Define the concept of Uberrima Fides.
Correct Answer

(D) Fully disclosing all material facts about the proposed by him in the proposal

Explanation

Solution: Uberrima fidesis a Latin phrase meaning utmost good faith literally, most abundant faith. It is the name of a legal doctrine which governs insurance contracts. Fully disclosing all material facts about the proposed by him in the proposal.

[#607] Which of the two decisions are involved in a savings proposition?
Correct Answer

(D) Postponement of consumption and parting with liquidity

Explanation

Solution: Postponement of consumption and parting with liquidity are involved in a savings proposition. Postponement of consumption: an allocation of resources between present and future consumption. Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.

[#608] Which of the following is a contingency product
Correct Answer

(C) Life insurance

Explanation

Solution: Life insurance is a contingency product. Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc.

[#609] What is the time for approaching an insurance ombudsman?
Correct Answer

(C) Within one year of rejection of the complaint by the insurer

Explanation

Solution: Within one year of rejection of the complaint by the insurer can approach an insurance ombudsman.

[#610] Which of the following is not a pre-requisite for launching a complaint with ombudsman?
Correct Answer

(C) Complainant has to approach a consumer forum prior to ombudsman

Explanation

Solution: A person can directly lodge a complaint with ombudsman. Hence, it is not a pre-requisite that complainant has to approach a consumer forum prior to ombudsman.