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!

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Protection of Policyholder Interest MCQs | Page 5 of 8

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Q41.
What is the timeframe within which a life insurance company should process a claim upon receiving it?

a.

7 days

b.

15 days

c.

30 days

d.

60 days

Discuss
Answer: (b).15 days Explanation:Upon receiving a claim, a life insurance company must process it promptly to ensure timely resolution for the policyholder. This timeframe of 15 days ensures efficient handling of claims and provides assurance to the policyholder.
Q42.
If additional documents are required for processing a life insurance claim, when should the insurer raise queries or request additional documents?

a.

As soon as the claim is received

b.

Within 30 days of receiving the claim

c.

All at once and not in a piece-meal manner, within 15 days of receiving the claim

d.

Within 7 days of receiving the claim

Discuss
Answer: (c).All at once and not in a piece-meal manner, within 15 days of receiving the claim Explanation:It is essential for the insurer to request any additional documents or information required for processing the claim promptly. Consolidating all queries and requests and addressing them together within 15 days of receiving the claim ensures efficiency and clarity in the claims process.
Q43.
In case an investigation is warranted for a life insurance claim, when should the insurance company initiate and complete the investigation?

a.

Within 3 months from the date of lodging the claim

b.

Within 6 months from the date of receiving all relevant papers and clarifications required

c.

Within 30 days from the date of receiving the claim

d.

Within 1 year from the date of lodging the claim

Discuss
Answer: (b).Within 6 months from the date of receiving all relevant papers and clarifications required Explanation:If an investigation is necessary for a life insurance claim, it should be initiated and completed in a timely manner to avoid undue delay in claim settlement. Initiating and concluding the investigation within 6 months of receiving all necessary documents ensures a fair and expeditious process.
Q44.
What action should a life insurance company take if a claim is ready for payment but cannot be made due to identification issues?

a.

Deny the claim

b.

Hold the amount for the benefit of the payee and pay interest on it

c.

Initiate legal proceedings against the claimant

d.

Investigate further before making any decision

Discuss
Answer: (b).Hold the amount for the benefit of the payee and pay interest on it Explanation:If a claim is ready for payment but cannot be processed due to identification issues, the insurance company should act responsibly by safeguarding the funds for the rightful payee. Holding the amount for the payee's benefit and paying interest on it demonstrates the insurer's commitment to fair and transparent claim settlement practices.
Q45.
In case of delay by the insurer in processing a life insurance claim, at what rate should interest be paid on the claim amount?

a.

Equal to the bank rate

b.

1% above the bank rate

c.

2% above the bank rate

d.

5% above the bank rate

Discuss
Answer: (c).2% above the bank rate Explanation:If there is a delay in processing a life insurance claim, the insurer should compensate the policyholder for the inconvenience caused. Paying interest on the claim amount at a rate 2% above the bank rate ensures fair compensation for the delayed settlement, encouraging insurers to expedite the claims process.
Q46.
What is the recourse available to a policyholder if they are dissatisfied with the decisions taken by the insurer?

a.

They can directly appeal to the Insurance Ombudsman

b.

They can file a complaint with the Grievance Redressal Authority of the insurer

c.

They can file a lawsuit against the insurer in court

d.

They have no recourse

Discuss
Answer: (b).They can file a complaint with the Grievance Redressal Authority of the insurer Explanation:If a policyholder is dissatisfied with the decisions taken by the insurer, they can approach the Grievance Redressal Authority of the insurer to address their complaints and grievances.
Q47.
What is the maximum timeframe within which a surveyor should communicate his findings to the insurer after appointment?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:The surveyor is required to communicate his findings to the insurer within 30 days of his appointment. This ensures timely assessment of the claim and facilitates efficient claims processing.
Q48.
In case a survey report is found incomplete, within what timeframe should the insurer request an additional report?

a.

Within 7 days

b.

Within 15 days

c.

Within 30 days

d.

Within 60 days

Discuss
Answer: (b).Within 15 days Explanation:Upon receiving an incomplete survey report, the insurer should request an additional report within 15 days of the receipt of the original survey report. This ensures thorough assessment and resolution of the claim.
Q49.
How long does a surveyor have to furnish an additional report upon receiving a request from the insurer?

a.

1 week

b.

2 weeks

c.

3 weeks

d.

4 weeks

Discuss
Answer: (c).3 weeks Explanation:The surveyor must furnish an additional report within 3 weeks of receiving the communication from the insurer requesting the additional report. This ensures prompt response and completion of the assessment process.
Q50.
Within what timeframe should an insurer offer a settlement of the claim to the insured upon receiving the survey report?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:An insurer should offer a settlement of the claim to the insured within 30 days of receiving the survey report. This ensures timely resolution and communication regarding the claim status.
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