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 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.
Q22.
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.
Q23.
In what condition are insurance contracts considered valid if payment is made by cheque?

a.

Only if the cheque is realized

b.

Only if the cheque is submitted

c.

Regardless of whether the cheque is realized

d.

If the cheque is dishonoured

Discuss
Answer: (a).Only if the cheque is realized Explanation:Some insurers issue insurance contracts with a condition that, in case of payment by cheque, the contract is valid only if the cheque is realized, highlighting the significance of payment realization in determining the validity of the contract.
Q24.
What problem do insurers face with regards to 'unconcluded' contracts?

a.

Disputes over settlement of claims

b.

Dishonoured cheques

c.

Consumer grievances

d.

Assumption of risk by the insurer

Discuss
Answer: (a).Disputes over settlement of claims Explanation:Insurers face problems with regards to 'unconcluded' contracts, particularly when a cheque is dishonoured after the date of policy but before the death of the life assured, leading to disputes over settlement of claims.
Q25.
Who can enter into a contract as a proposer for an insurance product?

a.

A minor person

b.

An individual aged at least 16 years

c.

An individual aged at least 18 years and mentally sound

d.

An illiterate person without any declaration

Discuss
Answer: (c).An individual aged at least 18 years and mentally sound Explanation:A proposer for an insurance product can enter into a contract if they are at least 18 years old at the date of proposal and mentally sound.
Q26.
What is the minimum age requirement for a proposer to enter into a contract for an insurance product?

a.

16 years

b.

18 years

c.

21 years

d.

25 years

Discuss
Answer: (b).18 years Explanation:The minimum age requirement for a proposer to enter into a contract for an insurance product is 18 years.
Q27.
Can a minor person enter into a contract as a proposer for an insurance product?

a.

Yes

b.

No

c.

Only if they have a legal guardian appointed

d.

Only if they obtain special permission from the insurer

Discuss
Answer: (b).No Explanation:A minor person cannot enter into a contract as a proposer for an insurance product, but they can be the life assured or a beneficiary under the contract with a legal guardian appointed.
Q28.
Under what conditions can an illiterate person enter into a contract for an insurance product?

a.

If they are not mentally stable

b.

If they provide a false declaration

c.

If they obtain a declaration from a person confirming understanding of the consequences

d.

If they have a legal guardian appointed

Discuss
Answer: (c).If they obtain a declaration from a person confirming understanding of the consequences Explanation:An illiterate person can enter into a contract for an insurance product if they obtain a declaration from a person known to them confirming understanding of the consequences.
Q29.
What option is available for a person with a physical deformity preventing them from signing to enter into a contract for an insurance product?

a.

They cannot enter into a contract

b.

They can sign using a thumbprint

c.

They can enter into a contract if they obtain a power of attorney granted by a court

d.

They can appoint a legal guardian to enter into the contract on their behalf

Discuss
Answer: (c).They can enter into a contract if they obtain a power of attorney granted by a court Explanation:A person with a physical deformity preventing them from signing can enter into a contract for an insurance product if they hold a power of attorney granted by a court.
Q30.
Who are the parties involved in a life insurance contract?

a.

The insurer, proposer, and beneficiary

b.

The insurer, proposer, and policy-owner

c.

The insurer, policyholder, and beneficiary

d.

The insurer, policy-owner, and life assured

Discuss
Answer: (b).The insurer, proposer, and policy-owner Explanation:In a life insurance contract, the parties involved are the insurer, proposer, and policy-owner.
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