Question

How much is the insurable interest that a person can have in his own life?

a.

A person can have unlimited insurable interest in his own life

b.

A person's insurable interest in his own life is limited to the value of his financial responsibilities like children's education and marriage expenses.

c.

A person's insurable interest in his own life is I imited to the value of his financial liabilities like home loans and other loans.

d.

No insurable interest

Posted under IC22 Life Insurance Underwriting

Answer: (a).A person can have unlimited insurable interest in his own life Explanation:Insurable interest refers to the financial interest that a person has in the life, health or property of another person. When it comes to a person's own life, there is no limit to the amount of insurable interest that they can have. This means that a person can purchase life insurance for themselves for any amount.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How much is the insurable interest that a person can have in his own life?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What is important to understand when granting insurance to non-working women?

View solution

Q. Why is it important to understand who the beneficiary of the insurance policy is for non-working women?

View solution

Q. What is the potential risk when an illiterate woman with little or no earned income asks for a term plan with a high sum assured?

View solution
View All MCQs on IC22 Life Insurance Underwriting

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!

Analytical Instrumentation

Dive into the world of precise measurements with our Analytical Instrumentation...

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...

Mass Transfer

Delve into the science of Mass Transfer with our specialized category. Explore...

Human Resource Management

Explore the dynamic field of Human Resource Management (HRM) with our dedicated...

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...