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 4 of 8

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Q31.
What was a major goal of the Life Insurance Corporation Act passed in 1956?

a.

To privatize the insurance industry

b.

To regulate premium rates

c.

To spread life insurance widely, especially in rural areas

d.

To create a monopoly of foreign insurance companies

Discuss
Answer: (c).To spread life insurance widely, especially in rural areas Explanation:The Life Insurance Corporation of India was created with the objective of spreading life insurance more broadly, particularly to the rural areas, aiming to reach all insurable persons in the country with adequate financial cover at a reasonable cost.
Q32.
What significant event took place in the Indian insurance sector on 1st September 1956?

a.

The introduction of the first insurance policy

b.

The establishment of the first Indian insurance company

c.

The nationalization of the life insurance industry

d.

The passing of the Insurance Act 1938

Discuss
Answer: (c).The nationalization of the life insurance industry Explanation:On 1st September 1956, the life insurance industry in India was nationalized, marking a pivotal moment in the sector's history. This move led to the creation of the Life Insurance Corporation of India, aiming to expand life insurance coverage across the country.
Q33.
How did the Insurance Act of 1938 impact the Indian insurance sector?

a.

It encouraged the establishment of more insurance companies.

b.

It provided strict state control over both life and non-life insurance.

c.

It nationalized the insurance industry.

d.

It introduced insurance for the rural population.

Discuss
Answer: (b).It provided strict state control over both life and non-life insurance. Explanation:The Insurance Act of 1938 was a crucial piece of legislation that governed not only life insurance but also non-life insurance, introducing strict state control over the insurance business to ensure its sound operation and protect policyholders.
Q34.
Which was the first life insurance company to start functioning on Indian soil?

a.

Bharat Insurance Company

b.

Bombay Mutual Life Assurance Society

c.

Oriental Life Insurance Company

d.

Life Insurance Corporation of India

Discuss
Answer: (c).Oriental Life Insurance Company Explanation:Oriental Life Insurance Company, established in 1818, holds the distinction of being the first life insurance company to begin operations on Indian soil, marking the commencement of structured life insurance services in India.
Q35.
What was the significant contribution of Bombay Mutual Life Assurance Society in 1870?

a.

It was the first to offer life insurance to Indians at normal rates.

b.

It introduced the concept of mutual insurance in India.

c.

It was the first foreign insurance company in India.

d.

It nationalized the life insurance sector.

Discuss
Answer: (a).It was the first to offer life insurance to Indians at normal rates. Explanation:Bombay Mutual Life Assurance Society, founded in 1870, was significant for being the first Indian life insurance company, offering life insurance to Indians at normal rates, thereby democratizing access to life insurance across different sections of the society.
Q36.
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.
Q37.
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.
Q38.
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.
Q39.
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.
Q40.
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.
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