Question
a.
The insured has an insurable interest in the policy
b.
The insured's life is not worth insuring
c.
The insured has no dependents who rely on their income
d.
The insured's death should not result in a financial windfall for their beneficiaries
Posted under IC22 Life Insurance Underwriting
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What does it mean to say that the insured is "Not worth more dead than alive"?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. What should underwriters do to relate past financial trends with current economic conditions?
View solution
Q. What is the purpose of financial underwriting in insurance?
View solution
Q. How much is the insurable interest that a person can have in his own life?
View solution
Q. What are the three methods of arriving at the amount of insurance cover that an individual should take?
View solution
Q. What is the human life value method based on?
View solution
Q. What are the factors taken into account while using the human life value method to arrive at the insurance cover amount?
View solution
Q. What is the needs analysis method based on?
View solution
Q. What is the needs analysis method of arriving at the insurance cover amount?
View solution
Q. In the needs analysis method, what financial responsibilities of the insured are taken into account?
View solution
Q. What are the assumptions considered while using the needs analysis method to arrive at the insurance cover amount?
View solution
Q. What is the multiple of salary method used for?
View solution
Q. What factors determine the multiple of salary in the multiple of salary method?
View solution
Q. What is the recommended income multiple for an individual aged 18-35 in the multiple of salary method?
View solution
Q. What are the advantages of using the multiple of salary method?
View solution
Q. What are the disadvantages of using the multiple of salary method?
View solution
Q. There are various methods used to calculate how much insurance cover an individual should take. In which method is the present value of future earning potential of an individual used as a yardstick to calculate how much insurance cover an individual should take?
View solution
Q. What is the challenge that underwriters face when granting insurance to non-working women?
View solution
Q. What approach can be adopted to arrive at the insurance cover for non-working women?
View solution
Q. What is the recommended approach when granting small sums assured to non-working women?
View solution
Q. What needs to be considered when granting moderate or large covers to non-working women?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC22 Life Insurance Underwriting? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!
