Question

How can the cover amount for a policy issued under the MWP Act be determined?

a.

By using an income multiple approach or a need analysis method

b.

By using a credit rating approach

c.

By using a collateral analysis method

d.

By using an actuarial table

Posted under IC22 Life Insurance Underwriting

Answer: (a).By using an income multiple approach or a need analysis method Explanation:As the policy issued under the MWP Act covers the life of an individual with beneficiaries as mentioned above, it needs to be treated as personal insurance cover for the purpose of financial underwriting. An income multiple approach or a need analysis method can be used to arrive at the cover amount.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How can the cover amount for a policy issued under the MWP Act be determined?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the starting point for financial underwriting?

View solution

Q. For small to moderate insurance covers, what information is sufficient for an underwriter?

View solution

Q. For business insurance, which of the following documents are required?

View solution

Q. How long of a salary slip history should be provided to estimate a steady and realistic income?

View solution

Q. For which type of insurance covers is very little financial underwriting required?

View solution

Q. What is required for business insurance?

View solution

Q. What financial documents are required for self-employed applicants/professionals?

View solution

Q. What is the basic financial document required for all cases?

View solution

Q. What is the standard income document required for salaried applicants?

View solution

Q. Which document can be used to estimate the annual income of the life assured in case the applied sum assured is not justifiable based on income documents?

View solution

Q. What is the standard document required for Keyman insurance?

View solution

Q. What is the standard document required for Partnership insurance?

View solution

Q. What are the basic financial document requirements for all cases?

View solution

Q. Which set of financial documents is required for high sum assured cases?

View solution

Q. What can be used to arrive at the estimated annual income of the life assured?

View solution

Q. What are the standard documents required for Keyman insurance?

View solution

Q. What are the standard documents required for Partnership insurance?

View solution

Q. What are the standard documents required for Married Women Property Act?

View solution

Q. What is financial underwriting?

View solution

Q. Who should have an insurable interest in the life of the insured?

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!

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

IC22 Life Insurance Underwriting

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

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...