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[#451] Universal life insurance is characterized by

(A) Flexible premiums

(B) Flexible face amount

(C) Death benefit

(D) All of the above

Correct Answer

(D) All of the above

Explanation

Solution: Universal life insurance is characterized by Flexible premiums, Flexible face amount and Death benefit.

[#452] In Universal life products, larger the size of the premium,_ the coverage provided and _ the policy cash value.

(A) Smaller, larger

(B) Larger, smaller

(C) Smaller, Smaller

(D) Larger, larger

Correct Answer

(D) Larger, larger

Explanation

Solution: In Universal life products, larger the size of the premium, Larger the coverage provided and larger the policy cash value.

[#453] Under Universal life products, there was facility of completely flexible premiums after how many years?

(A) One

(B) Two

(C) Three

(D) Four

Correct Answer

(A) One

Explanation

Solution: Under Universal life products, there was facility of completely flexible premiums after One years.

[#454] Which is the correct statement?

(A) Agent is primary underwriter as also field underwriter

(B) Numerical method of underwriting is by far the most objective method

(C) Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk

(D) All of the above

Correct Answer

(D) All of the above

Explanation

Solution: All the statements are correct. Agent is primary underwriter as also field underwriter, Numerical method of underwriting is by far the most objective method and Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk.

[#455] Which is incorrect?

(A) Special reports like ECG, EEG, Chest x-ray reports etc are called for in large sums proposed and where the ages of the proposers are higher than otherwise

(B) First insurance at age of 50 for a large sum proposed is a sign of moral hazard

(C) Family history has no role in risk assessment

(D) If there is no relationship between the proposer’s income and the sum proposed moral hazard is suspected

(E) Ombudsman is appointed by the central Govt under powers of the Insurance Act’38 and under Redressal of Public Grievance Rules 1998

(F) The recommendations of the Ombudsman are always binding on the insured

(G) The Ombudsman can act as a mediator by mutual agreement between the insurer and the insured

(H) If mediated, the decision of the Ombudsman is final whether to accept or reject the compliant

Correct Answer

(C) Family history has no role in risk assessment
(F) The recommendations of the Ombudsman are always binding on the insured

Explanation

Solution: Family history plays a critical role in assessing the risk of inherited medical conditions and single gene disorders. Several methods have been established to obtain family medical histories, including the family history questionnaire or checklist and the pedigree.

Insurance - Study Mode

[#451] Universal life insurance is characterized by

Correct Answer

Explanation

[#452] In Universal life products, larger the size of the premium,_________ the coverage provided and _________ the policy cash value.

Correct Answer

Explanation

[#453] Under Universal life products, there was facility of completely flexible premiums after how many years?

Correct Answer

Explanation

[#454] Which is the correct statement?

Correct Answer

Explanation

[#455] Which is incorrect?

Correct Answer

Explanation

[#452] In Universal life products, larger the size of the premium,_ the coverage provided and _ the policy cash value.