Protection of Policyholder Interest MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Protection of Policyholder Interest, 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 Protection of Policyholder Interest 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 Protection of Policyholder Interest mcq questions that explore various aspects of Protection of Policyholder Interest problems. Each MCQ is crafted to challenge your understanding of Protection of Policyholder Interest 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 Protection of Policyholder Interest MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Protection of Policyholder Interest. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Protection of Policyholder Interest knowledge to the test? Let's get started with our carefully curated MCQs!

Protection of Policyholder Interest MCQs | Page 2 of 8

Discover more Topics under IC 14 Regulations of Insurance Business

Q11.
What does the post-sale stage of an insurance policy involve?

a.

Convassing insurance to potential customers.

b.

Explaining the various benefits of the policy to customers.

c.

Providing after-sales services such as issuing policy bonds and settling claims.

d.

Handling complaints and grievances related to insurance policies.

Discuss
Answer: (c).Providing after-sales services such as issuing policy bonds and settling claims. Explanation:The post-sale stage of an insurance policy involves providing after-sales services such as issuing policy bonds, providing various policy services like changes of address, nomination, assignment, loan, surrender, and finally, settling claims.
Q12.
What is the primary purpose of the point of sale in insurance?

a.

To make a profit for the insurance company.

b.

To educate potential customers about insurance products.

c.

To provide complete information about insurance products to potential customers.

d.

To persuade customers to purchase insurance policies.

Discuss
Answer: (c).To provide complete information about insurance products to potential customers. Explanation:The primary purpose of the point of sale in insurance is to provide complete information about insurance products to potential customers, ensuring transparency and fair treatment to policyholders by disclosing all relevant information.
Q13.
What should be clearly stated in the prospectus of an insurance product?

a.

The personal information of the insured.

b.

The names of the insurance agents involved.

c.

The scope of benefits, extent of insurance cover, warranties, exceptions, and conditions of the insurance cover.

d.

The financial performance of the insurance company.

Discuss
Answer: (c).The scope of benefits, extent of insurance cover, warranties, exceptions, and conditions of the insurance cover. Explanation:The prospectus of an insurance product should clearly state the scope of benefits, extent of insurance cover, warranties, exceptions, and conditions of the insurance cover, ensuring transparency and clarity for the policyholders.
Q14.
What is the maximum allowable percentage of premium for all riders combined in relation to the main product?

a.

10%

b.

20%

c.

30%

d.

40%

Discuss
Answer: (c).30% Explanation:The premium relatable to all the riders put together shall not exceed 30% of the premium of the main product, as per insurance regulations.
Q15.
According to insurance regulations, what must be provided to the prospect to enable them to decide on the best cover?

a.

A sales pitch.

b.

Material information in respect of a proposed cover.

c.

A discount on the premium.

d.

A free gift.

Discuss
Answer: (b).Material information in respect of a proposed cover. Explanation:According to insurance regulations, the insurer or its agent or intermediary must provide all material information in respect of a proposed cover to the prospect to enable them to decide on the best cover that would be in their interest.
Q16.
In which type of insurance is a proposal for grant of cover required to be evidenced by a written document?

a.

Only in marine insurance

b.

Only in life insurance

c.

In all cases, except in marine insurance

d.

Only in general business insurance

Discuss
Answer: (c).In all cases, except in marine insurance Explanation:In all cases, except in marine insurance, a proposal for grant of cover must be evidenced by a written document, as per insurance regulations.
Q17.
What languages may be used for the forms and documents used in the grant of cover?

a.

Any foreign language

b.

Only English

c.

Languages recognized under the Constitution of India

d.

Any language preferred by the insurer

Discuss
Answer: (c).Languages recognized under the Constitution of India Explanation:The forms and documents used in the grant of cover may be made available in languages recognized under the Constitution of India, depending upon the circumstances of each case.
Q18.
According to the regulations, who bears the onus of proof regarding any information not recorded in the proposal form?

a.

The insurer

b.

The proposer

c.

The insurance agent

d.

The nominee

Discuss
Answer: (a).The insurer Explanation:The onus of proof regarding any information not recorded in the proposal form rests with the insurer, especially if the insurer claims that the proposer suppressed any material information or provided misleading or false information on any matter material to the grant of cover.
Q19.
What action must the insurer take when the benefit of nomination is available?

a.

Encourage the proposer to reject the nomination

b.

Draw the attention of the proposer to it and encourage the prospect to avail the facility

c.

Discourage the proposer from availing the facility

d.

Provide the nomination without informing the proposer

Discuss
Answer: (b).Draw the attention of the proposer to it and encourage the prospect to avail the facility Explanation:When the benefit of nomination is available, the insurer must draw the attention of the proposer to it and encourage the prospect to avail the facility, as per insurance regulations.
Q20.
Within what period must the insurer communicate all decisions regarding proposals in writing?

a.

Within 30 days

b.

Within 10 days

c.

Within 15 days

d.

Within 20 days

Discuss
Answer: (c).Within 15 days Explanation:All decisions regarding proposals must be communicated by the insurer in writing within a reasonable period not exceeding 15 days from receipt of proposals by the insurer, ensuring speed and efficiency in the processing of proposals.
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