Policyholder Rights of Assignment,Nomination and Transfer MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Policyholder Rights of Assignment,Nomination and Transfer, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Policyholder Rights of Assignment,Nomination and Transfer MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Policyholder Rights of Assignment,Nomination and Transfer mcq questions that explore various aspects of Policyholder Rights of Assignment,Nomination and Transfer problems. Each MCQ is crafted to challenge your understanding of Policyholder Rights of Assignment,Nomination and Transfer principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Policyholder Rights of Assignment,Nomination and Transfer MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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Policyholder Rights of Assignment,Nomination and Transfer MCQs | Page 8 of 11

Discover more Topics under IC 14 Regulations of Insurance Business

Q71.
What happens if the insured can prove that a suppression or misstatement of a material fact was true to the best of their knowledge?

a.

The insurer is liable to pay double the policy amount.

b.

The insurer must return all premiums collected.

c.

The insurer cannot repudiate the policy on the grounds of fraud.

d.

The insurer must waive the premiums for the remainder of the policy term.

Discuss
Answer: (c).The insurer cannot repudiate the policy on the grounds of fraud. Explanation:If the insured can prove that a suppression or misstatement of a material fact was true to the best of their knowledge or that there was no deliberate intention to suppress the fact, the insurer cannot repudiate the policy on the grounds of fraud.
Q72.
Who is considered the agent of the insurers for the formation of the contract?

a.

The policyholder.

b.

The insured's legal representatives.

c.

The person soliciting and negotiating the insurance contract.

d.

The nominee mentioned in the policy.

Discuss
Answer: (c).The person soliciting and negotiating the insurance contract. Explanation:A person who solicits and negotiates a contract of insurance is deemed to be the agent of the insurers for the formation of the contract.
Q73.
What obligation does the insurer have if they decide to repudiate a policy based on misstatement or suppression of a material fact?

a.

The insurer must inform the insured verbally.

b.

The insurer must communicate in writing the grounds and materials for the decision.

c.

The insurer must cancel the policy immediately.

d.

The insurer must provide a refund of premiums collected to the insured.

Discuss
Answer: (b).The insurer must communicate in writing the grounds and materials for the decision. Explanation:If the insurer decides to repudiate a policy based on misstatement or suppression of a material fact, they must communicate in writing to the insured or their legal representatives/nominees/assignees the grounds and materials for the decision.
Q74.
In the United Kingdom, how do courts address claims in cases where the doctrine of uberrima fides is strictly adhered to?

a.

Courts strictly uphold the doctrine without considering fairness.

b.

Courts side with insurers regardless of the circumstances.

c.

Courts insist on fairness and good faith from both insurers and claimants.

d.

Courts prioritize the interests of insurers over claimants.

Discuss
Answer: (c).Courts insist on fairness and good faith from both insurers and claimants. Explanation:In the United Kingdom, while the doctrine of uberrima fides is strictly adhered to, courts come to the rescue of claimants by insisting on fairness and good faith on the part of the insurer as well.
Q75.
In Australia, under what circumstances can a policy be avoided based on incorrect statements made by the insured?

a.

If any statement made within three years preceding the date of policy issuance is found to be untrue.

b.

If the insured dies within three years of the policy issuance and any material statement made is found to be fraudulent.

c.

If the insured dies within three years of the policy issuance and any material statement made is found to be untrue.

d.

If the insured dies within three years of the policy issuance and any statement made within three years is found to be untrue.

Discuss
Answer: (b).If the insured dies within three years of the policy issuance and any material statement made is found to be fraudulent. Explanation:In Australia, a policy can be avoided if the insured dies within three years of policy issuance and any material statement made is found to be fraudulently untrue.
Q76.
How do "Incontestable Clauses" function in the United States insurance policies?

a.

They allow insurers to contest claims at any time.

b.

They prevent insurers from contesting claims after a certain period.

c.

They impose strict contestability periods on all insurance policies.

d.

They have no effect on the contestability of claims.

Discuss
Answer: (b).They prevent insurers from contesting claims after a certain period. Explanation:In the United States, "Incontestable Clauses" in insurance policies prevent insurers from contesting claims after a certain period, typically after a specified period of time has elapsed.
Q77.
When can an insurer in the United States challenge a claim based on the policy's incontestable clause?

a.

Only if the claim is made within a specified period after policy issuance.

b.

Only if the insured dies within a certain period after policy issuance.

c.

At any time during the contestable period.

d.

If the insured dies during the contestable period, regardless of when the claim is made.

Discuss
Answer: (d).If the insured dies during the contestable period, regardless of when the claim is made. Explanation:In the United States, if the insured dies during the contestable period, any claim based on the policy can be challenged on grounds of error or misstatement at any time, irrespective of when the repudiation is made.
Q78.
According to Section 64VB of the Insurance Act, 1938, when can an insurer assume a risk in India?

a.

Only after receiving the premium in full within a specified time frame.

b.

Only after the premium payable is guaranteed to be paid by a third party.

c.

Only after a deposit of a prescribed amount is made in advance.

d.

Only after the premium has been paid in cash or by cheque to the insurer.

Discuss
Answer: (d).Only after the premium has been paid in cash or by cheque to the insurer. Explanation:According to Section 64VB, an insurer can assume a risk in India only after the premium has been paid in cash or by cheque to the insurer.
Q79.
How does Section 64VB specify the timeline for assuming a risk when the premium is tendered by postal money order or cheque sent by post?

a.

Risk may be assumed on the date the premium is received by the insurer.

b.

Risk may be assumed on the date the money order is booked or the cheque is posted.

c.

Risk may be assumed on the date of policy issuance.

d.

Risk may be assumed after verification of the payment by the insurer.

Discuss
Answer: (b).Risk may be assumed on the date the money order is booked or the cheque is posted. Explanation:Section 64VB states that when the premium is tendered by postal money order or cheque sent by post, the risk may be assumed on the date the money order is booked or the cheque is posted.
Q80.
How must any refund of premium due to an insured be paid according to Section 64VB?

a.

By cash only, directly to the insured.

b.

By cheque or postal money order, directly to the insured, and a proper receipt must be obtained.

c.

By bank transfer, directly to the insured.

d.

By the insurer's agent, with commission deducted.

Discuss
Answer: (b).By cheque or postal money order, directly to the insured, and a proper receipt must be obtained. Explanation:According to Section 64VB, any refund of premium due to an insured must be paid by cheque or postal money order directly to the insured, and a proper receipt must be obtained by the insurer.
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