Importance of Product Design MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Importance of Product Design, a fundamental topic in the field of IC 92 Actuarial Aspects of Product Development. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Importance of Product Design 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 Importance of Product Design mcq questions that explore various aspects of Importance of Product Design problems. Each MCQ is crafted to challenge your understanding of Importance of Product Design principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 92 Actuarial Aspects of Product Development tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Importance of Product Design MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

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Importance of Product Design MCQs | Page 3 of 10

Discover more Topics under IC 92 Actuarial Aspects of Product Development

Q21.
What is an important consideration in identifying the target population for insurance products?

a.

Maximizing profitability

b.

Identifying groups with similar needs

c.

Adhering to regulatory requirements

d.

Ensuring simplicity in product design

Discuss
Answer: (b).Identifying groups with similar needs Explanation:An important consideration in identifying the target population for insurance products is identifying groups of potential customers with similar needs, which assists in tailoring product features and benefits to meet those needs effectively.
Q22.
What is one condition for eligibility to purchase insurance related to age?

a.

Minimum age requirement

b.

Maximum age requirement

c.

Minimum income requirement

d.

Maximum income requirement

Discuss
Answer: (a).Minimum age requirement Explanation:One condition for eligibility to purchase insurance related to age includes both a minimum age requirement, specifying the earliest age at which insurance can be purchased, and a maximum age requirement, specifying the oldest age at which insurance can be purchased.
Q23.
Why is income considered a factor in eligibility for purchasing insurance?

a.

To determine the level of coverage needed

b.

To establish credibility with the insurer

c.

To prevent fraudulent claims

d.

To ensure compliance with regulatory requirements

Discuss
Answer: (a).To determine the level of coverage needed Explanation:Income is considered a factor in eligibility for purchasing insurance to ensure that individuals can afford to pay the premiums for the desired coverage over the long term, thus determining the level of coverage needed.
Q24.
What role does health play in determining eligibility to purchase insurance?

a.

It establishes credibility with the insurer

b.

It determines the amount of coverage provided

c.

It helps prevent fraudulent claims

d.

It ensures the affordability of premiums

Discuss
Answer: (c).It helps prevent fraudulent claims Explanation:Health plays a role in determining eligibility to purchase insurance by ensuring that individuals are in good health at the time of purchase, thus helping prevent fraudulent claims and ensuring the integrity of the insurance system.
Q25.
What condition must be met regarding citizenship for purchasing insurance?

a.

The customer must be an Indian citizen

b.

The customer must be a foreign national resident in India

c.

The customer must be a resident of India

d.

Both a and b

Discuss
Answer: (d).Both a and b Explanation:The condition regarding citizenship for purchasing insurance stipulates that the customer must be either an Indian citizen or a foreign national resident in India.
Q26.
What flexibility is provided regarding the frequency of premium payment?

a.

Only monthly payments are allowed

b.

The customer can choose any frequency of payment

c.

The customer can only pay premiums annually

d.

The customer must pay premiums quarterly

Discuss
Answer: (b).The customer can choose any frequency of payment Explanation:The flexibility provided regarding the frequency of premium payment allows the customer to choose any frequency of payment, such as monthly, quarterly, half-yearly, etc.
Q27.
Can the sum assured be changed during the period of the contract?

a.

Yes, anytime the customer desires

b.

No, it remains fixed throughout the contract period

c.

Only with the approval of the insurer

d.

Only with the approval of the regulator

Discuss
Answer: (b).No, it remains fixed throughout the contract period Explanation:The sum assured cannot be changed during the period of the contract; it remains fixed throughout the contract period, although some insurers may allow alterations for an increase in sum assured subject to certain conditions.
Q28.
What occupations might insurers restrict coverage for?

a.

Teachers

b.

Divers

c.

Accountants

d.

Engineers

Discuss
Answer: (b).Divers Explanation:Insurers might restrict coverage for occupations such as divers, stuntmen, etc., due to the higher risk associated with these occupations.
Q29.
Under what circumstances is the sum assured payable in the provision of benefits?

a.

In case of maturity only

b.

In case of death only

c.

In case of early termination only

d.

In case of death or maturity

Discuss
Answer: (d).In case of death or maturity Explanation:The sum assured is payable in the provision of benefits in case of either death or maturity of the life assured, depending on the terms of the insurance contract.
Q30.
Who is typically entitled to receive the benefits as the beneficiary?

a.

The insurer

b.

The policyholder

c.

The nominee named in the insurance contract

d.

The legal heirs

Discuss
Answer: (c).The nominee named in the insurance contract Explanation:The beneficiary entitled to receive the benefits is typically the person nominated by the policyholder in the insurance contract. If there is a dispute, the legal heirs may be entitled to receive the benefits.
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