Insurance Product MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Insurance Product, 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 Insurance Product 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 Insurance Product mcq questions that explore various aspects of Insurance Product problems. Each MCQ is crafted to challenge your understanding of Insurance Product 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 Insurance Product MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Insurance Product. 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 Insurance Product knowledge to the test? Let's get started with our carefully curated MCQs!

Insurance Product MCQs | Page 3 of 8

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Q21.
What financial problem does old age pose?

a.

Higher chances of falling ill and increased medical expenses

b.

Loss of regular income and funeral expenses

c.

Legal expenses and hospital bills

d.

Increased education expenses and marriage costs

Discuss
Answer: (a).Higher chances of falling ill and increased medical expenses Explanation:Old age presents the financial problem of a decreased flow of regular income and the potential need for increased medical expenses due to a higher likelihood of falling ill. Additionally, funeral expenses may arise in the event of death due to old age, adding to the financial burden.
Q22.
How do insurers address other financial needs?

a.

By providing immediate monetary benefits upon the occurrence of specific events

b.

By offering survival benefits and partial withdrawals/surrenders during the contract period

c.

By covering all financial needs through comprehensive insurance policies

d.

By reimbursing all medical and funeral expenses directly to the insured

Discuss
Answer: (b).By offering survival benefits and partial withdrawals/surrenders during the contract period Explanation:Insurers address other financial needs by offering survival benefits and partial withdrawals/surrenders during the contract period. These provisions provide liquidity to the customer at certain intervals, allowing them to meet various needs such as education expenses, marriage costs, or the purchase of capital items needed for the family.
Q23.
What does political utility refer to in the context of product utilities?

a.

The financial power granted by a product

b.

The sensory appeal of a product

c.

The social power granted by a product

d.

The social benefit granted by a product

Discuss
Answer: (c).The social power granted by a product Explanation:Political utility of a product refers to the social power it grants, such as improving the social acceptance of the owner, as exemplified by a costly car enhancing the owner's status.
Q24.
Which type of utility refers to the financial power granted by a product?

a.

Political utility

b.

Economic utility

c.

Social utility

d.

Philosophical utility

Discuss
Answer: (b).Economic utility Explanation:Economic utility pertains to the financial power granted by a product, such as increasing the financial stability of an individual, as demonstrated by gold ornaments and diamonds.
Q25.
What defines the philosophical utility of a product?

a.

The sensory appeal of the product

b.

The social morality surrounding the product

c.

The social power granted by the product

d.

The financial power granted by the product

Discuss
Answer: (b).The social morality surrounding the product Explanation:Philosophical utility of a product is determined by social morality, as illustrated by the example of a bottle of wine having less philosophical utility compared to a religious book.
Q26.
Which type of utility is decided by the sensory appeal of a product?

a.

Political utility

b.

Economic utility

c.

Social utility

d.

Aesthetic utility

Discuss
Answer: (d).Aesthetic utility Explanation:Aesthetic utility is determined by the sensory appeal of a product, as exemplified by a colourful vase with a beautiful shape having greater aesthetic utility compared to a black vase.
Q27.
What are some issues related to the policy document of insurance products?

a.

The policy document is not legally negotiable.

b.

The language used in the contract is easily understood by a layman.

c.

Font size is large and easy to read.

d.

Courts interpret the terms mentioned in the contract in case of dispute.

Discuss
Answer: (d).Courts interpret the terms mentioned in the contract in case of dispute. Explanation:In case of a dispute over settlement of claim, courts interpret the terms mentioned in the insurance contract, indicating the legal aspect of insurance products and the significance of the policy document in resolving disputes.
Q28.
Where do many beneficiaries of insurance policies prefer to seek justice for disputes?

a.

Consumer forums

b.

Courts

c.

Insurance regulator offices

d.

Appellate authorities

Discuss
Answer: (c).Insurance regulator offices Explanation:Many beneficiaries of insurance policies prefer to seek justice for disputes by approaching the insurance regulator offices, consumer grievance cells in the offices of insurers, and insurance ombudsmen.
Q29.
What is the basis on which insurance would be granted in most countries?

a.

Insurance contracts

b.

Medical examiner’s reports

c.

Insurance proposal forms

d.

Insurance premiums

Discuss
Answer: (c).Insurance proposal forms Explanation:In most countries, the application for insurance, known as the proposal form, is the basis on which insurance would be granted.
Q30.
When is an insurance contract considered concluded?

a.

When the insurer receives premium which is realized into cash

b.

When the first premium is realized by the insurer

c.

When the policyholder submits the proposal form

d.

When the insurance regulator approves the contract

Discuss
Answer: (b).When the first premium is realized by the insurer Explanation:An insurance contract is considered concluded when the first premium is realized by the insurer, indicating the commencement of the contract.
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