Insurance - Study Mode

[#641] _________ refers to a hospital/health care provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility
Correct Answer

(B) Network provider

Explanation

Solution: Network provider refers to a hospital/health care provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility.

[#642] The sum assured under keyman insurance policy is generally linked to which of the following?
Correct Answer

(B) Business profitability

Explanation

Solution: The sum assured under keyman insurance policy is generally linked to Business profitability. Keyman is a term insurance policy where the sum assured is linked to the profitability of the company rather than the key person's own income. The premium is paid by the company. This is tax efficient as the entire premium is treated as business expense. In case the key person dies, the benefit is paid to the company.

[#643] Mortgage redemption insurance (MRI) can be categorised under _________.
Correct Answer

(B) Decreasing term life assurance

Explanation

Solution: Mortgage redemption insurance (MRI) can be categorised under decreasing term life assurance. It is basically a decreasing term life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he/she dies before its full repayment.

[#644] The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called _________.
Correct Answer

(B) Mortgage

Explanation

Solution: The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called Mortgage.

[#645] Which of the below policy can provide protection to home loan borrowers?
Correct Answer

(C) Mortgage Redemption Insurance

Explanation

Solution: Mortgage Redemption Insurance (MRI) is an insurance policy that provides financial protection for home loan borrowers. It is basically a decreasing term life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he/she dies before its full repayment.