Insurance - Study Mode
[#391] Declined life means
Correct Answer
(B) Life to which insurance cover could not be granted at affordable cost
Explanation
Solution: Declined life means Life to which insurance cover could not be granted at affordable cost. Its purpose it to protect insurance companies from applicants who may be lying about their current health conditions. Just because you have been previously denied life insurance does not mean you will be denied again.
[#392] When an underwriter has to be very careful?
Correct Answer
(B) When sum insured is very large
Explanation
Solution: An underwriter is an investment bank that helps companies introduce their new securities to the market. In the insurance business, an underwriter is a company liable for insured losses in return for a fee (premium).
[#393] With reference to Inflation, which of the following statement is not correct?
Correct Answer
(B) Inflation means more purchasing power
Explanation
Solution: Inflation means more purchasing power. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.
[#394] Of late, changing lifestyles of people lead to more _________
Correct Answer
(D) Borrowings
Explanation
Solution: Of late, changing lifestyles of people lead to more borrowings. A debt cycle is continual borrowing that leads to increased debt, increasing costs, and eventual default.
[#395] Which is not a part of Cash planning exercise?
Correct Answer
(D) Buying less insurance
Explanation
Solution: Buying less insurance is not a part of Cash planning exercise. If you buy more insurance than it is a part of cash planning.