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

Discover more Topics under IC 92 Actuarial Aspects of Product Development

Q31.
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.
Q32.
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.
Q33.
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.
Q34.
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.
Q35.
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.
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.
Page 4 of 8