Insurance - Study Mode

[#216] State the correct statement out of the following ones.
Correct Answer

(B) Nomination is entitled to give a valid discharge to an insurer for payment of claim
(H) Money Back plan is a kind of endowment plan
(K) First point of contact for health care to a needy person

Explanation

Solution: Nomination is entitled to give a valid discharge to an insurer for payment of claim. The nominee is statutorily recognized as a payee who can give a valid discharge to the Corporation for the payment of policy monies.

[#217] Pick out the incorrect sentence.
Correct Answer

(C) Underwriting is a needless exercise in today’s environment of inadequate coverage of population for life insurance

Explanation

Solution: Underwriting is a needed exercise in today’s environment of inadequate coverage of population for life insurance.

[#218] Indicate the correct sentence
Correct Answer

(D) All of the above

Explanation

Solution: All the statements are correct. In complex cases the underwriter may adopt judgment method, rather than numerical method only, Decision as to acceptability of risk is that of the underwriter and Postponement of risk is also a kind of underwriting decision.

[#219] State the correct sentence
Correct Answer

(B) Proposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established

Explanation

Solution: Proposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established.

[#220] Pick out the incorrect statement from the below mentioned statements.
Correct Answer

(A) Insurance agent represents his client in the first place

Explanation

Solution: Insurance agent does not represents his client in the first place. Insurance Agents enter into a contract to represent an insurer.