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[#351] State the correct option

Correct Answer

(A) Amount of annuity depends on duration of annuity payments, principal sum of money, investment period and rate of return
(E) In a policy document it is now compulsory to indicate the address of the local Ombudsman
(J) Premium paid towards health cover earns income tax rebate under sec.80D of the Income Tax Act

Explanation

Solution: Amount of annuity depends on duration of annuity payments, principal sum of money, investment period and rate of return. An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees. Annuities are created and sold by financial institutions, which accept and invest funds from individuals and then, upon annuitization, issue a stream of payments at a later point in time.

[#352] State the correct statement out of these.

(A) Every pension is a kind of annuity

(B) Every annuity is also a pension

(C) Pension and annuity are one and the same

(D) Every pension is not an annuity

Correct Answer

(A) Every pension is a kind of annuity

Explanation

Solution: Every pension is a kind of annuity. Annuity is a fixed sum that you get every year to provide for pension.

[#353] Pick out the correct sentence from the flowing ones.

(A) Family floater policy does not cover parents

(B) Family floater is for self and spouse only

(C) Family floater policy covers self, spouse, parents and dependants

(D) Uncle and aunt can be covered in a family floater

Correct Answer

Explanation

Solution: Family floater policy covers self, spouse, parents and dependants. A family floater covers all the family members under one single plan. The sum insured is fixed and gets exhausted as and when any member avails medical services and makes a claim. The members coverable under a family floater can be the policyholder and his/her parents, spouse and children.

[#354] Identify the correct statement out of the following ones.

(A) In emergencies insurer may waive preauthorisation for entering into a hospital for treatment

(B) In all cases preauthorisation either by the insurer or TPA is a must before getting admitted into a hospital

(C) There is no provision for nomination in a health insurance cover

(D) Summary of benefits, terms and conditions for each product in a health cover is not mandatory

Correct Answer

(A) In emergencies insurer may waive preauthorisation for entering into a hospital for treatment

Explanation

Solution: In emergencies insurer may waive preauthorisation for entering into a hospital for treatment.

[#355] Inaccurate statements in proposal without any fraudulent intention are

(A) Representation

(B) Merely misrepresentation

(C) Contributing statement

(D) Offer by the party

Correct Answer

(B) Merely misrepresentation

Explanation

Solution: Inaccurate statements in proposal without any fraudulent intention are merely misrepresentation. There are three main types of misrepresentation, fraudulent, negligent, and innocent.