Insurance - Study Mode

[#266] IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of "B" in IBAI?
Correct Answer

(C) Brokers

Explanation

Solution: Insurance Brokers Association of India (I.B.A.I.) was incorporated as a Company under Section 25 of the Companies Act, 1956 vide Certificate of Incorporation No. U 67120 MH 2001 NPL 132860 dated 25th July 2001. B stands for Brokers.

[#267] What is the way to revival a lapsed policy of life insurance?
Correct Answer

(D) Any of the above

Explanation

Solution: Ordinary revival, Special Revival, Instalment revival is the way to revival a lapsed policy of life insurance. The revival of life insurance policy is required when the insured fails to pay the premium within the grace period and the coverage of the policy lapses.

[#268] Which is the simplest form of revival?
Correct Answer

(A) Ordinary revival

Explanation

Solution: Ordinary revival is the simplest form of revival. As the name implies, ordinary revival is the most simple form of revival. Here, the revival is done simply by paying the delayed premium amount along with the interest charge.

[#269] Under special revival which is correct?
Correct Answer

(D) All of the above

Explanation

Solution: All the above are correct under special revival. It is as though a new policy is issued by altering DOC, The maturity date also gets altered and difference between old and new premium is payable.

[#270] What is the condition for special revival?
Correct Answer

(B) The policy must not have acquired surrender value

Explanation

Solution: The policy must not have acquired surrender value is the condition for special revival. Typically, one should have paid at least three years' premium to the insurer and thereafter can opt for either one of the 2 above mentioned options for policies with a term of 10 years or more. For policies with a lesser term, at least two years' premium payment is mandatory.