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 9 of 10

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Q81.
Which of the following statements regarding insurance product design is FALSE?

a.

For insurance products, product design is an important factor to be considered.

b.

Product design is required to fill the gap or inadequacy in the existing product range.

c.

There are various factors affecting product design, most important being profitability and its sensitivity, marketability and competitiveness, level of risk, administration system, consistency with other products and regulation.

d.

Products should be capable of being sold in the market profitably.

Discuss
Answer: (b).Product design is required to fill the gap or inadequacy in the existing product range. Explanation:Product design is not solely aimed at filling gaps or inadequacies in existing product ranges, although it may be a consideration.
Q82.
What factors affect the sale of insurance products?

a.

Distribution network, marketing and advertising, efficiency of administrative staff

b.

Eligibility to buy, provision of benefits, beneficiaries

c.

Target population, regulatory requirements, marketability

d.

Administration system, level of risk, consistency with other products

Discuss
Answer: (a).Distribution network, marketing and advertising, efficiency of administrative staff Explanation:The sale of insurance products depends upon various factors such as distribution network, marketing and advertising, and efficiency of administrative staff.
Q83.
Which regulatory system does NOT involve filing the product before introducing it to the market?

a.

File and use system

b.

Use and file system

c.

Free system

d.

Both a and b

Discuss
Answer: (c).Free system Explanation:The free system allows insurers to design and sell products without prior filing with the regulator.
Q84.
What is NOT a stakeholder in insurance product design?

a.

Policyholders

b.

Distributors

c.

Regulators

d.

Investors

Discuss
Answer: (d).Investors Explanation:While investors may have interests in insurance companies, they are not typically considered stakeholders in insurance product design.
Q85.
Which of the following does not qualify as eligibility criteria to buy insurance products?

a.

Age

b.

Gender

c.

Health

d.

Marital status

Discuss
Answer: (d).Marital status Explanation:Marital status is not one of eligibility criteria to buy insurance products.
Q86.
Selling insurance products depends upon which of the below factors?

a.

Distribution network

b.

Marketing and advertising

c.

Efficiency of administrative staff

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Selling insurance products depends upon several factors like: Distribution network, marketing and advertising, efficiency of administrative staff etc.
Q87.
Which of the following is / are the main purposes of the file and use system?

a.

To safeguard interest of the public

b.

To ensure solvency of the insurers

c.

Both a and b

d.

None of the above

Discuss
Answer: (c).Both a and b Explanation:The main purposes of the file and use system are to safeguard the interest of the public and to ensure solvency of the insurers.
Q88.
Which of the following is the main reason for considering consumer forums as stakeholders?

a.

These forums protect the interest of the beneficiaries.

b.

These forums protect the interest of the regulators.

c.

These forums protect the interest of the regulators and beneficiaries

d.

These forums provide consumer education.

Discuss
Answer: (a).These forums protect the interest of the beneficiaries. Explanation:Consumer forums protect the interest of the beneficiaries hence they are considered as stakeholders.
Q89.
If the life assured dies during the tenure of the simple insurance contract, which of the following is payable?

a.

Sum assured

b.

Sum assured with premiums paid

c.

Sum assured with guaranteed additions

d.

Sum assured after appropriate deductions

Discuss
Answer: (a).Sum assured Explanation:If the life assured dies during the tenure of the insurance contract, the sum assured is payable.
Q90.
The term ‘freedom with restrictions’ best describes which of the following regulatory systems?

a.

Use and File system

b.

File and use system

c.

Free system

d.

None of the above

Discuss
Answer: (a).Use and File system Explanation:Use and file systems provide an opportunity to the insurer for innovation in the product design.
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