Insurance - Study Mode

[#646] What does the term “premium” denote in relation to an insurance policy?
Correct Answer

(B) Price paid by an insured for purchasing the policy

Explanation

Solution: The term premium denotes the price that is paid by an insured for purchasing an insurance policy.

[#647] Which of the below is not a factor in determining life insurance premium?
Correct Answer

(B) Rebate

Explanation

Solution: Rebate is not a factor in determining life insurance premium. Rebate is a portion of the agent's commission returned to an insured or anything else of value given an insured as an inducement to buy.

[#648] Why non-medical underwriting is resorted to ?
Correct Answer

(B) To save on cost of conducting medical exam

Explanation

Solution: Non-medical underwriting is resorted to save on cost of conducting medical exam. Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process.

[#649] Under which type of underwriting several conditions are to be followed?
Correct Answer

(A) Non-medical underwriting

Explanation

Solution: Non-medical underwriting several conditions are to be followed. Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process.

[#650] Under Non-medical underwriting, which is not a condition to be followed?
Correct Answer

(D) Limit in income

Explanation

Solution: Under Non-medical underwriting, Limit in income is not a condition to be followed.