Insurance - Study Mode
[#636] What are the charges in a ULIP?
Correct Answer
(C) Both A & B
Explanation
Solution: The premium of ULIP is divided into three parts: 1. Firstly, there is a policy allocation charge (PAC) which is comprised of agents' commission, policy setup costs, administrative costs and statutory levies. 2. The second component is the mortality charge which is the cost of providing risk cover.3 The balance of premiums after meeting the above two are allocated for the purchase of units.
[#637] In a money back plan, what is the maturity claim payable?
Correct Answer
(B) Sum insured less survival benefits paid already
Explanation
Solution: In a money back plan, maturity claim payable is the sum insured less survival benefits paid already. The insured is entitled to claim the maturity benefits only when the policy is in force and all premiums have been paid duly.
[#638] Moral hazard by health insurance companies can result in _________.
Correct Answer
(B) Adverse selection
Explanation
Solution: Moral hazard by health insurance companies can result in adverse selection. Adverse selection occurs when there's a lack of symmetric information prior to a deal between a buyer and a seller.
[#639] Primary care can be described as _________.
Correct Answer
(C) First point of contact for people seeking healthcare
Explanation
Solution: Primary care can be described as first point of contact for people seeking healthcare. Primary care includes health promotion, disease prevention, health maintenance, counseling, patient education, diagnosis and treatment of acute and chronic illnesses in a variety of health care settings (e.g., office, inpatient, critical care, long-term care, home care, day care, etc.).
[#640] _________ is an insured who undergoes treatment after getting admitted in a hospital.
Correct Answer
(A) Inpatient
Explanation
Solution: Inpatient is an insured who undergoes treatment after getting admitted in a hospital.