Insurance - Study Mode

[#281] What does a premium depend upon?
Correct Answer

(C) The decision of the underwriter

Explanation

Solution: Premium depend upon the decision of the underwriter.Their job is to review applications for insurance, analyze risks and decide whether the company will offer coverage.

[#282] Which one of the following statements is true with regard to Children’s policies?
Correct Answer

(C) Both the statements above are wrong

Explanation

Solution: On vesting, the insured person doesnt have an option to change the term of the policy and to increase the SA.

[#283] What is the duration of grace period in a policy?
Correct Answer

(D) 31 days

Explanation

Solution: The duration of grace period in a policy is 31 days.

[#284] Pick out the correct ones.
Correct Answer

(A) Nomination can be changed at will by the assured during the course of the policy

Explanation

Solution: Nomination can be changed at will by the assured during the course of the policy. There is no limit on how many times a nominee can be changed during the term of a particular policy though some companies may charge money for nomination change.

[#285] Who of the following may not qualify for a nonmedical underwriting?
Correct Answer

(C) A worker aged 50 in an underground coal mine

Explanation

Solution: A worker aged 50 in an underground coal mine may not qualify for a nonmedical underwriting.