Insurance - Study Mode

[#126] Which of the below is not a strategy to maximise discretionary income?
Correct Answer

(D) Insurance purchase

Explanation

Solution: Insurance purchase is not a strategy to maximise discretionary income.

[#127] _________ life insurance pays off a policyholder's mortgage in the event of the person's death.
Correct Answer

(B) Mortgage

Explanation

Solution: Mortgage life insurance pays off a policyholder's mortgage in the event of the person's death. This protects a mortgage holder's heirs in the event of his/her untimely demise. If the beneficiary dies after he/she has finished paying for the house, no mortgage life insurance is paid out.

[#128] Which of the below option is correct with regards to a term insurance plan?
Correct Answer

(C) Term insurance can be bought as a stand-alone policy as well as a rider with another policy

Explanation

Solution: Term insurance can be bought as a stand-alone policy as well as a rider with another policy. Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary.

[#129] The written insurance contract that may include all clauses, riders and endorsements. It is called?
Correct Answer

(C) Policy

Explanation

Solution: Policy is the written insurance contract that may include all clauses, riders and endorsements.

[#130] Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under-
Correct Answer

(A) Companies Act, 1956

Explanation

Solution: Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under-Companies Act, 1956.