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 6 of 8

Discover more Topics under IC 14 Regulations of Insurance Business

Q51.
If an insurer decides to reject a claim under the policy, within what timeframe should it communicate the decision to the insured?

a.

Within 15 days

b.

Within 30 days

c.

Within 45 days

d.

Within 60 days

Discuss
Answer: (b).Within 30 days Explanation:If an insurer decides to reject a claim, it should communicate the decision to the insured within 30 days of receiving the survey report or the additional survey report. This ensures transparency and clarity in the claims process.
Q52.
Within how many days should the payment of the settled claim amount be made to the insured?

a.

3 days

b.

5 days

c.

7 days

d.

10 days

Discuss
Answer: (c).7 days Explanation:Upon acceptance of an offer of settlement by the insured, the payment of the settled claim amount should be made within 7 days. This ensures prompt disbursement of funds to the insured.
Q53.
In case of delay in the payment of the claim amount, at what rate should the insurer pay interest?

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:In case of delay in the payment of the claim amount, the insurer should pay interest at a rate which is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed. This serves as compensation for the delay and encourages timely claims settlement.
Q54.
What is the proposed purpose of the Key Feature Document according to IRDA?

a.

To increase the complexity of insurance products

b.

To ensure fair treatment to policyholders

c.

To reduce the transparency of insurance products

d.

To make insurance products more difficult to understand

Discuss
Answer: (b).To ensure fair treatment to policyholders Explanation:The Key Feature Document is proposed by IRDA to ensure fair treatment to policyholders by providing clear and concise information about insurance products.
Q55.
What is a key requirement for the language used in the Key Feature Document?

a.

It should be complex and technical

b.

It should be simple and easy to understand

c.

It should contain industry-specific jargon

d.

It should be lengthy and detailed

Discuss
Answer: (b).It should be simple and easy to understand Explanation:The language used in the Key Feature Document should be simple to ensure policyholders can easily comprehend the information provided.
Q56.
Why should the Key Feature Document be a separate item and not part of other literature?

a.

To confuse policyholders

b.

To increase the length of other literature

c.

To make it easier for policyholders to find and understand

d.

To hide important information from policyholders

Discuss
Answer: (c).To make it easier for policyholders to find and understand Explanation:Keeping the Key Feature Document separate ensures policyholders can easily locate and understand the main features of the insurance product.
Q57.
What should the Key Feature Document explicitly highlight?

a.

The benefits for the insurer

b.

The risks involved for the policyholder

c.

The profits generated by the insurance company

d.

The premium payment schedule

Discuss
Answer: (b).The risks involved for the policyholder Explanation:The Key Feature Document should explicitly bring out the risks involved for the policyholder to ensure transparency and informed decision-making.
Q58.
What font size should the title of the Key Feature Document be?

a.

10 size font

b.

12 size font

c.

14 size font

d.

16 size font

Discuss
Answer: (c).14 size font Explanation:The title of the Key Feature Document should be in at least 14 size font, as indicated by IRDA, to make it prominent and easily readable.
Q59.
In what languages should the Key Feature Document be available?

a.

Only in English

b.

Only in the insurer's preferred language

c.

Only in Hindi

d.

In local languages depending on the region where the policyholder resides

Discuss
Answer: (d).In local languages depending on the region where the policyholder resides Explanation:The Key Feature Document should be available in local languages depending on the region where the policyholder resides to ensure accessibility and understanding for all policyholders.
Q60.
What is the primary goal of the Insurance Regulatory and Development Authority (IRDA) regarding insurers' guidelines?

a.

To reduce transparency in insurance policies

b.

To limit access to information for prospects and policyholders

c.

To ensure required information is available to prospects and policyholders

d.

To increase complexity in insurance products

Discuss
Answer: (c).To ensure required information is available to prospects and policyholders Explanation:IRDA aims to ensure that insurers follow certain guidelines to provide necessary information to prospects and policyholders.
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