Insurance - Study Mode

[#346] Type of Occupational pension scheme -
Correct Answer

(C) Both A & B

Explanation

Solution: Occupational pension scheme is a scheme set up by an employer to provide retirement benefits for its employees. Uninsured pension scheme and Insured Pension scheme are Type of Occupational pension scheme.

[#347] Discretionary income is not maximised by
Correct Answer

(D) Purchase of insurance policy

Explanation

Solution: Discretionary income is not maximised by purchase of insurance policy. Some people use credit cards to purchase discretionary goods, but increasing personal debt is not the same as having discretionary income.

[#348] What is the essential purpose of Life Insurance?
Correct Answer

(C) It is protection for loss of economic value of human life in the event of death or disability

Explanation

Solution: The essential purpose of Life Insurance is protection for loss of economic value of human life in the event of death or disability. The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

[#349] Which is correct
Correct Answer

(C) It refers to allocation of resources over time
(G) Moral Hazard in health insurance would mean adverse selection
(L) If assets are insured the owner of such assets can have comfort of peace of mind and look after his business without worries
(P) Losses of a few persons are shared by many persons thus reducing the burden of contribution to loss compensation

Explanation

Solution: Inter temporal refers to allocation of resources over time.

[#350] Unbundling of life insurance products refers to
Correct Answer

(D) Separation of protection and savings element

Explanation

Solution: Unbundling of life insurance products refers to Separation of protection and savings element.