Insurance - Study Mode

[#276] Loan value is a percentage of –
Correct Answer

(B) Surrender Value

Explanation

Solution: Loan value is a percentage of Surrender Value. The loan amount you can take out is a percentage of its surrender value. Usually, loans can be availed up to 80-90% of the surrender value of traditional plans with guaranteed returns.

[#277] Which is the right time for taking life insurance?
Correct Answer

(D) All of the above

Explanation

Solution: All of the above is the right time for taking life insurance.

[#278] Retention of risk may be done conveniently by
Correct Answer

(A) Large corporations

Explanation

Solution: Retention of risk may be done conveniently by large corporations. The business would be responsible for all costs and damages that occur as the result of a crisis, accident or other unforeseen incident that results in loss. Retention refers to the assumption of risk of loss or damages.

[#279] A valuation is done by a life insurer because
Correct Answer

(D) All of the above

Explanation

Solution: A valuation is done by a life insurer because It is a statutory requirement, it is necessary to be able to declare dividends to shareholders and it tells the insurer how well it is managing the business.

[#280] The reason for charging level premiums is
Correct Answer

(D) All of the above

Explanation

Solution: The reason for charging level premiums is Risk increases as age increases, it is convenient to the policyholder and it is convenient to the insurer.