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 7 of 8

Discover more Topics under IC 14 Regulations of Insurance Business

Q61.
What is emphasized regarding transparency at the time of sale and promotion?

a.

Minimal disclosure to policyholders

b.

Lack of information regarding the product

c.

Complete information should be provided to the policyholder

d.

Partial information should be provided to the policyholder

Discuss
Answer: (c).Complete information should be provided to the policyholder Explanation:Utmost transparency is required at the time of sale and promotion to ensure policyholders are given complete information about the product.
Q62.
What languages should forms and documents be made available in?

a.

Only in English

b.

Only in Hindi

c.

In languages recognized under the Constitution of India

d.

In languages recognized by international organizations

Discuss
Answer: (c).In languages recognized under the Constitution of India Explanation:Forms and documents used in the grant of cover should be made available in languages recognized under the Constitution of India to enhance accessibility for policyholders.
Q63.
What should the proposal form avoid?

a.

Being too short

b.

Being complex and too long

c.

Being incomplete

d.

Being available only in English

Discuss
Answer: (b).Being complex and too long Explanation:The proposal form should not be complex and too long to ensure ease of understanding for prospects.
Q64.
What is the primary purpose of a policy bond?

a.

To provide legal protection to the insurance company

b.

To outline the terms and conditions of the insurance contract

c.

To specify the premium payment schedule

d.

To determine the coverage limits of the policy

Discuss
Answer: (b).To outline the terms and conditions of the insurance contract Explanation:A policy bond is a legal document that sets out the terms and conditions of the insurance contract.
Q65.
Within what timeframe can a customer cancel a life insurance policy under the free-look period option?

a.

7 days

b.

15 days

c.

30 days

d.

60 days

Discuss
Answer: (b).15 days Explanation:The free-look period option allows the customer to cancel the policy within 15 days of receiving the policy documents if they are not comfortable with its terms and conditions.
Q66.
What is the purpose of the Insurance Ombudsman?

a.

To create insurance policies

b.

To manage insurance claims

c.

To mitigate problems involved in redressing grievances of insured customers

d.

To promote insurance sales

Discuss
Answer: (c).To mitigate problems involved in redressing grievances of insured customers Explanation:The Insurance Ombudsman was created by the Government of India to provide quick disposal of grievances of insured customers and mitigate the problems involved in redressing those grievances.
Q67.
What obligation does every insurer carrying on life insurance business have regarding policy lapses?

a.

They must renew the policy automatically

b.

They must notify the policyholder of available options upon lapse

c.

They must cancel the policy without notification

d.

They must ignore policy lapses

Discuss
Answer: (b).They must notify the policyholder of available options upon lapse Explanation:Every insurer carrying on life insurance business is required to give notice to the holder of a life insurance policy informing them of the options available upon lapsing of the policy.
Q68.
Within what timeframe must a life insurance company settle or dispute a claim?

a.

7 days

b.

15 days

c.

30 days

d.

60 days

Discuss
Answer: (c).30 days Explanation:A life insurance company is required to settle or dispute the claim within 30 days from the date of receipt of the last requirement from the claimant.
Q69.
What is the motive behind the Key Feature Document?

a.

To increase insurance premiums

b.

To simplify insurance policies

c.

To ensure fair treatment to policyholders

d.

To promote insurance sales

Discuss
Answer: (c).To ensure fair treatment to policyholders Explanation:The motive behind the Key Feature Document is to ensure fair treatment to policyholders by providing clear information about insurance products.
Q70.
What is the temporary insurance certificate issued to the customer before issuing the insurance policy known as?

a.

Policy bond

b.

Cover note

c.

Acknowledgement letter

d.

None of the above

Discuss
Answer: (b).Cover note Explanation:The temporary insurance certificate issued before the policy is known as a cover note, providing temporary coverage until the issuance of the policy.
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