Insurance - Study Mode
[#706] Which of the below is not a valid consideration for a contract?
Correct Answer
(C) Bribe
Explanation
Solution: Bribe is not a valid consideration for a contract. Bribery is the act of giving or receiving something of value in exchange for some kind of influence or action in return, that the recipient would otherwise not offer.
[#707] Which of the below party is not eligible to enter into a life insurance contract?
Correct Answer
(B) Minor
Explanation
Solution: Minor is not eligible to enter into a life insurance contract. However, although a minor child has insurable interest in the life of his/her earning parents, but children can't take insurance for parents because, as a minor, a child can't enter into a contract.
[#708] Find out the proximate cause for death in the following scenario? Ajay falls off a horse and breaks his back. He lies there in a pool of water and contracts pneumonia. He is admitted to the hospital and dies because of pneumonia.
Correct Answer
(C) Falling off a horse
Explanation
Solution: Falling off a horse is the proximate cause for death in the given scenario.
[#709] An individual with an aggressive risk profile is likely to follow wealth _________ investment style.
Correct Answer
(C) Accumulation
Explanation
Solution: An individual with an aggressive risk profile is likely to follow wealth accumulation investment style.
[#710] In decreasing-term insurance, the premiums paid _________ over time.
Correct Answer
(C) Remain constant
Explanation
Solution: In decreasing-term insurance, the premiums paid remain constant over time. Decreasing term insurance is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually.