Insurance - Study Mode

[#286] In which case is the moral hazard present?
Correct Answer

(B) A race goer with betting habits and usually a heavy consumer of alcohol

Explanation

Solution: A race goer with betting habits and usually a heavy consumer of alcohol is the moral hazard present. Moral hazard is the risk that a party has not entered into a contract in good faith or has provided misleading information about its assets, liabilities, or credit capacity.

[#287] What is defined an early claim?
Correct Answer

(D) A claim by death within three years of commencement

Explanation

Solution: A claim by death within three years of commencement is defined as an early claim. When a person with a life insurance policy – called a life assured – dies, a claim intimation should be sent to the insurance company as early as possible.

[#288] State the incorrect sentence
Correct Answer

(D) There is no such thing as rider benefit in a policy contract

Explanation

Solution: There is rider benefit in a policy contract. A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy.

[#289] In a ULIP claim before the date of maturity will give
Correct Answer

(A) Higher of the sum assured or the fund value

Explanation

Solution: In a ULIP claim before the date of maturity will give Higher of the sum assured or the fund value.

[#290] State which is correct.
Correct Answer

(D) All of the above

Explanation

Solution: All the above are correct. There is no difference between an individual agent and a corporate agent as both of them represent an insurance company, An agent can work for a life insurer as also a non-life insurer, either individually or together and A composite agent means an agent working for one life and one non-life insurer.