Insurance - Study Mode

[#726] The main role of an underwriter in a non-life insurance company is normally to
Correct Answer

(C) Design the structure of the products to be offered

Explanation

Solution: The main role of an underwriter in a non-life insurance company is normally to design the structure of the products to be offered.

[#727] Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will
Correct Answer

(C) Require insurance cover

Explanation

Solution: Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will Require insurance cover. Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services.

[#728] How are perils and hazards normally distinguished under term insurance policies?
Correct Answer

(B) Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk

Explanation

Solution: Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.

[#729] In insurance terms, the risk of suffering a disability is best described as what type of risk?
Correct Answer

(A) Financial

Explanation

Solution: Financial loss would be severe even though chance of loss is small and situation of low probability but high severity is where insurance works as efficiently and effectively.

[#730] When critical illness rider benefit is payable?
Correct Answer

(B) When the insured is diagnosed with critical illness

Explanation

Solution: A critical illness rider makes living benefits payable to the insured for medical expenses prior to death.Generally, the extra cover is equal to the sum assured on the base policy and is paid upon diagnosis of the illness.