Insurance - Study Mode
[#331] Which kind policies are not entitled bonuses?
Correct Answer
(D) Whole life
Explanation
Solution: Whole life policies are not entitled for bonuses. Not all life insurance policies are entitled to receive the bonus amount. Only participating (with-profit) policies qualify for the bonus and the policyholders holding a participating life insurance policy will only qualify for the bonus payout.
[#332] A policy which has run for 8 years can be called into question if there is a_________
Correct Answer
(D) None of the above
Explanation
Solution: Life insurers cannot reject claims made on policies that are over three years old. Life insurance companies must compulsorily pay all claims made three years after the date of commencement of a policy, according to a recent clarification issued by the sector regulator. No exceptions allowed. If there is fraud, mis-statement or non-disclosure by the policyholder, the insurance company may discover and act on it within the three-year deadline. After that, the policy cannot be called into question.
[#333] What is paid by the insurer when the policyholder decides to discontinue the policy
Correct Answer
(B) Surrender Value
Explanation
Solution: If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as surrender value.
[#334] A person employed to act on behalf of another in dealing with a third person is called _________
Correct Answer
(D) Agent
Explanation
Solution: A person employed to act on behalf of another in dealing with a third person is called Agent. An agent is a person employed to do any act for another, or to represent another in dealings with third persons.
[#335] Insurance Agent is governed by _________
Correct Answer
(B) Insurance Act
Explanation
Solution: Insurance Agent is governed by Insurance Act. Insurance agents act as the final connecting link between the insurance company and the individual investor as arepresentative of theinsurer.