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 4 of 10

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Q31.
What happens if premiums are not paid within the specified due date?

a.

The insurance cover continues indefinitely

b.

The insurance cover continues with a penalty

c.

The insurance cover ceases from the due date of the unpaid premium installment

d.

The insurance cover continues but with reduced benefits

Discuss
Answer: (c).The insurance cover ceases from the due date of the unpaid premium installment Explanation:If premiums are not paid within the specified due date, the insurance cover ceases from the due date of the unpaid premium installment.
Q32.
What remedy might an insurer provide for the suppression of information in the original application?

a.

Cancel the contract

b.

Increase the sum assured

c.

Reduce the premiums

d.

Extend the policy term

Discuss
Answer: (a).Cancel the contract Explanation:An insurer might cancel the contract if any material information is suppressed in the original application (proposal form) at the time of issuing the contract.
Q33.
What recourse does an insurer have if the age of the insured is found to be understated or overstated?

a.

Return the premiums paid without any deductions

b.

Recalculate premiums and adjust the policy accordingly

c.

Provide additional benefits to the insured

d.

Issue a new policy with corrected age at entry

Discuss
Answer: (b).Recalculate premiums and adjust the policy accordingly Explanation:If the age of the insured is found to be understated or overstated, an insurer might recalculate premiums and ask the policyholder to pay the differences with interest, or take other appropriate actions depending on the circumstances.
Q34.
What recourse is available if the original policy is lost due to fire, theft, or any reason?

a.

The insurer provides a full refund of premiums

b.

The insurer issues a duplicate policy at the expense of the policyholder

c.

The policyholder must bear the loss with no remedy available

d.

The insurer provides a replacement policy free of charge

Discuss
Answer: (b).The insurer issues a duplicate policy at the expense of the policyholder Explanation:If the original policy is lost due to fire, theft, or any reason, the insurer might issue a duplicate policy at the expense of the policyholder, subject to conditions prescribed by the insurer.
Q35.
How are consumer grievances typically addressed by insurers?

a.

By providing compensation to the policyholder

b.

By referring the grievances to consumer forums and courts

c.

By ignoring the grievances

d.

By providing services to the policyholder

Discuss
Answer: (b).By referring the grievances to consumer forums and courts Explanation:Consumer grievances are typically addressed by referring them to consumer forums and courts, although the policyholder may also seek intervention and settlement by Ombudsmen, subject to the prevailing laws and regulations.
Q36.
What does the assignment facility allow a policyholder to do?

a.

Cancel the policy

b.

Transfer the policy to another person

c.

Request a duplicate policy

d.

Apply for a loan against the policy

Discuss
Answer: (b).Transfer the policy to another person Explanation:The assignment facility allows a policyholder to transfer the policy to another person.
Q37.
Why is it important for product design to use simple language in describing terms?

a.

To confuse the policyholder

b.

To minimize policyholder understanding

c.

To comply with legal requirements

d.

To ensure policyholder comprehension

Discuss
Answer: (d).To ensure policyholder comprehension Explanation:It is important for product design to use simple language in describing terms to ensure that policyholders can understand the terms and conditions of their insurance policies easily.
Q38.
What should be avoided in insurance product design according to general observations?

a.

Inclusion of restrictive clauses

b.

Providing clear explanations of terms

c.

Simplifying the language used in sales literature

d.

Providing fine print details for transparency

Discuss
Answer: (a).Inclusion of restrictive clauses Explanation:In general observations, it is advised to avoid the inclusion of restrictive clauses in insurance product design to prevent potential problems and maintain the insurer's image.
Q39.
Why should complex design be avoided in insurance products?

a.

To increase customer satisfaction

b.

To minimize confusion

c.

To enhance product competitiveness

d.

To comply with regulatory requirements

Discuss
Answer: (b).To minimize confusion Explanation:Complex design should be avoided in insurance products to minimize confusion among policyholders, ensuring that the terms and conditions are easily understandable.
Q40.
What is the importance of using good-quality paper for insurance contracts?

a.

To increase the cost of production

b.

To improve the durability of the document

c.

To enhance the visual appearance

d.

To comply with environmental regulations

Discuss
Answer: (b).To improve the durability of the document Explanation:Using good-quality paper for insurance contracts improves the durability of the document, ensuring that it remains intact and legible over time.
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