Deck 3: Insurance Policies: Understand Ing Surrender, Claims, and Contracts

Question 1

A --- is a Demand , that, the Insurer should Make Good the Promise, Specified in the Contract.

A)Claim
B)Repudiation
C)Fore-Closure
D)Grievance

Answer 1

Claim

Question 2

Which One of the Following Statements, is In-Correct, with Regard to 'Surrender' of the Policy?

A)Surrender-Value, that is Payable to Insured, is, Usually, a Percentage of the Premiums-Paid.
B)A Policy can be surrendered, only if, it has acquired the Paid- Up Value.
C)Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value.
D)Surrender-Value is Payable on Voluntary Termination of the Policy-Contract by the Insured.

Answer 2

Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value.

Question 3

Which One of the Following Statements, is In-Correct, with Regard to Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.

A)A Specified Amount is Paid, as per the Policy- Terms, in the Event of Diagnosis of a Critical Illness.
B)The Illness should have been covered in the List of Critical Illnesses, specified by the Insurance Company.
C)Critical Illness (C.I.) Rider is an Example of the Claims, that may occur, during the Policy- Term.
D)The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made.

Answer 3

The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made.

Question 4

Mr. Nimesh bought a 20-Years' Unit-Linked Insurance Plan (U.L.I.P.). In the Event: Mr. Nimesh dies, Within the Policy-Term, Which of the Following, will be paid?

A)Surrender-Value will be paid.
B)Premiums paid will be Returned, After Deducting the Dues.
C)Lower of Sum-Assured or Fund-Value, will be paid.
D)Higher of Sum-Assured or Fund-Value, will be paid.

Question 5

What is the Period, up to which, a Policy can be repudiated, by the Insurance Company, if, Material Facts presented by the Insured, in the Proposal, are False?

A)Up To 15 Days
B)Up To 6 Months
C)Up To 1 Year
D)Up To 3 Years

Question 6

As per Insurance Regulatory and Development Authority of India (I.R.D.A.I.) (Protection of Policy- Holders' Interests) Regulations, 2017, What is the Stipulated Period, within which, Claim under a Life Assurance Policy, shall be paid or shall be disputed, provided that, the Company has received All Relevant Papers?

A)Within 15 Days
B)Within 20 Days
C)Within 30 Days
D)Within 3 Months

Question 7

In Case of Presumption of Death of Life-Assured, Which One of the Following Documents, needs to be submitted, by the Nominee?

A)Death-Certificate from Municipal Corporation.
B)Decree from a Competent Court.
C)Employer's Certificate
D)Inquest-Report

Question 8

Mr. Brijesh purchased a 20-Years' Unit-Linked Insurance-Plan (U.L.I.P.), from ABC Insurance Company. If Mr. Brijesh Dies, Before the Maturity of the Policy, then Insurance Company will have to pay --.

A)Surrender-Value
B)Premiums, After Deducting the Dues.
C)Lower of Sum-Assured or Fund-Value.
D)Higher of Sum-Assured or Fund-Value.

Question 9

Which One of the Following Claims, can be Payable, Only to the Assignee or Nominee?

A)Death-Claim
B)Maturity-Claim
C)Survival-Benefit
D)Surrender-Value

Question 10

Which One of the Following Documents, is an Additional Document, required to be submitted for Claim, in Case of Accidental Death, as compared to Natural Death?

A)Certificate of Burial or Cremation
B)Treating Physician's Certificate
C)Post-Mortem Report
D)Employer's Certificate

Question 11

Which One of the Following Documents, needs to be submitted, by the Nominee, in the Event of Natural Death of the Life-Assured? Choose the Most Appropriate Option.

A)Inquest Report
B)Death-Certificate
C)Post-Mortem Report
D)First Information Report (F.I.R.)

Question 12

Mr. Rahul had purchased an Insurance-Cover, from ABC Insurance Company, for a Period of 20 Years. On Completion of 20 Years, the Company pays Fund-Value to Mr. Rahul, as the Maturity-Claim. Which Type of Plan, was taken, by Mr. Rahul?

A)Participating Plan
B)Return of Premium(s) Plan
C)Unit-Linked Insurance Plan (U.L.I.P.)
D)Money-Back Assurance Plan

Question 13

Mr. Vishal had taken an Insurance of Rupees 50 Lakhs, for a Period of 25 Years. On Maturity, the Insurer pays the Maturity-Claim Minus the Survival-Benefits, Received During the Term of the Policy. Which Type of Plan, was taken, by Mr. Vishal?

A)Participating Plan
B)Return of Premium(s) Plan
C)Unit-Linked Insurance Plan (U.L.I.P.)
D)Money-Back Assurance Plan

Question 14

Mr. Sudhir had taken an Insurance-Cover of Rupees 25 Lakhs, from ABC Insurance Company, 20 Years Back. On Maturity, the Company pays the Sum-Assured Plus Accumulated Bonuses, Less the Dues (Outstand ing Premium(s)), as the Maturity-Claim, to Mr. Sudhir. Which Type of Plan, was taken, by Mr. Sudhir?

A)Participating Plan
B)Return of Premium(s) Plan
C)Unit-Linked Insurance Plan (U.L.I.P.)
D)Money-Back Assurance Plan

Question 15

Mr. Kapil had taken Insurance-Cover of Rupees 50 Lakhs, for a Period of 25 Years. Mr. Kapil dies in a Car- Accident, during the Policy-Term, and the Company pays the Sum-Assured Plus Accumulated Bonuses, to His Nominee. Which Type of Claim, was paid by the Insurance Company?

A)Maturity-Claim
B)Death-Claim
C)Rider-Benefit
D)Survival-Benefit

Question 16

Why Do, Insurers need Material Information?

A)For Documentation Purposes.
B)Decide on the Risk- Acceptance, and the Terms and Conditions, Associated.
C)To Comply with the Regulatory Requirements.
D)To Improve the Customer-Service.

Question 17

Which Element of a Valid Contract, relates to Insurance-Premium?

A)Offer and Acceptance
B)Capacity of Parties-to- Contract
C)Free Consent
D)Consideration

Question 18

Identify the Choice, which relates to In-Accurate Statements, which are made with Any Fraudulent Intention.

A)Representation
B)Mis-Representation
C)Coercion
D)Fraud

Question 19

Identify the Option, that can be treated as a Valid Contract.

A)Mr. Ramesh buys a Property, from His Friend, for a Throw- Away Price.
B)Mr. Ramesh enters into a Contract, when, He is Not in a Sound State of Mind.
C)Mr. Ramesh bribes an Official, to get into a Contract.
D)Mr. Ramesh provides False Information, to get Mr. Mahesh, to sign a Contract.

Question 20

Compare: Gambling and Insurance.

A)Gambling and Insurance, Both, are the Same.
B)Gambling has No Insurable Interest involved, but Insurance does have.
C)Insurance has Only Profitable Outcomes, while, Gambling could result in Losses.
D)Gambling is Legally Enforceable, but, Insurance is Not.

Question 21

Summarise "Contracts of Adhesion", for us.

A)These Contracts are drafted by Both Parties, and have to be accepted by Both.
B)These Contracts are drafted by One Party, and the Other can only Accept or Reject it.
C)These Contracts are drafted by One Party, and the Other has to Accept it.
D)These Contracts are Binding on Both the Parties.

Question 22

Mr. Ramesh fudges His Company Balance-Sheet, Before Selling-Out the Company. Categorise His Action into One of the Following Options.

A)Mistake
B)Coercion
C)Mis-Representation
D)Fraud

Question 23

What is the Subject-Matter of Life Assurance?

A)Premium
B)Human Life
C)Property
D)Goodwill

Question 24

Select a Scenario, that showcases the Principle of Uberrima Fides.

A)Timely Payment of Premium.
B)Disclosing All Material Information on the Insurance Proposal- Form.
C)Faking All Material Information on the Insurance Proposal- Form.
D)Disclosing All Irrelevant Information on the Insurance Proposal- Form.

Question 25

In Relation to Life Assurance, Look at the Following Two Statements, and Select the True One(s):
I: Age is Material Information, and may affect the Terms of Underwriting.
II: If Age is Found to be Different, the Only Effect is on the Premium-Rate.

A)Only Statement-I is True.
B)Only Statement-II is True.
C)Both: Statement-I and Statement-II, are True.
D)Both: Statement-I and Statement-II, are False.