Insurance - Study Mode

[#846] Which of the following funds provides for predominant investment in equities?
Correct Answer

(A) Equity fund

Explanation

Solution: Equity fund provides for predominant investment in equities. An equity fund is a fund that invests in stocks, also called equity securities. Equity funds are practical investments for most people. The attributes that make equity funds most suitable for small individual investors are the reduction of risk.

[#847] In order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law?
Correct Answer

(B) Premiums must be paid for least 3consecuitve years

Explanation

Solution: In order for the policy to acquire a guaranteed surrender value, Premiums must be paid for at least 3 consecuitve years the premium be paid as per law.

[#848] What will happen if the policy holder does not pay the premium by the due date and dies during the grace period?
Correct Answer

(C) The insurer will pay the claim after deducting the unpaid premium

Explanation

Solution: If the policy holder does not pay the premium by the due date and dies during the grace period the insurer will pay the claim after deducting the unpaid premium.

[#849] Amrita is pregnant. She has applied for a term insurance cover. WHICH of the below option will be the best option to choose for an underwriter to offer insurance to Amrita? Choose the most likely option.
Correct Answer

(D) Acceptance with a restrictive clause

Explanation

Solution: A restrictive clause is a clause which functions as an adjective to identify the word it modifies. A restrictive clause is essential for the intended meaning. Hence in this case acceptance with a restrictive clause must be proceeded.

[#850] Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. To whom will the payment be made in this case?
Correct Answer

(B) Karan

Explanation

Solution: Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. The payment be made to Karan in this case.