Insurance - Study Mode

[#491] Which facility is given to the policyholder to neutralise the bargaining power in adhesion contracts?
Correct Answer

(D) Free look period

Explanation

Solution: A free look period is a period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.

[#492] Which of the following defines a proposal form?
Correct Answer

(D) IRDA (Protection of Policyholders' Interests) Regulations, 2002

Explanation

Solution: IRDA (Protection of Policyholders' Interests) Regulations, 2002 defines a proposal form.

[#493] What are the two distinct phases of a deferred annuity?
Correct Answer

(C) Accumulation and Payout phases

Explanation

Solution: Accumulation and Payout phases are the two distinct phases of a deferred annuity. A deferred payment annuity is an insurance product that provides future payments to the buyer rather than an immediate stream of income.

[#494] Who bears the investment risk in a fixed benefit annuity?
Correct Answer

(A) Insurer

Explanation

Solution: Insurer bears the investment risk in a fixed benefit annuity. The annuitant bears the investment risk in a variable annuity, whereas the insurer bears the investment risk in a fixed annuity.

[#495] State the correct option.
Correct Answer

(A) In a policy document, it is now compulsory to indicate the address of the local Ombudsman

Explanation

Solution: In a policy document, it is now compulsory to indicate the address of the local Ombudsman.