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 5 of 8

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Q41.
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.
Q42.
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.
Q43.
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.
Q44.
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.
Q45.
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.
Q46.
What is the relationship between the proposer and the life assured in a life insurance contract?

a.

They are always the same person

b.

They are always different persons

c.

They can be the same or different persons

d.

They are referred to as the insurer and the policy-owner

Discuss
Answer: (c).They can be the same or different persons Explanation:In a life insurance contract, the proposer and the life assured can be the same person or different persons, depending on the scenario.
Q47.
What does insurable interest mean in the context of a life insurance contract?

a.

Financial problems faced by the insurer

b.

Financial dependence of the beneficiary on the life assured

c.

Financial support provided by the insurer to the life assured

d.

Financial frauds and disputes avoided by the insurer

Discuss
Answer: (b).Financial dependence of the beneficiary on the life assured Explanation:Insurable interest in a life insurance contract means that the beneficiary could face financial problems in the event of death of the life assured due to their financial dependence on the life assured.
Q48.
Who has an insurable interest in their employees?

a.

The employees

b.

The employees' families

c.

The employer

d.

The employer's business partners

Discuss
Answer: (c).The employer Explanation:An employer has an insurable interest in their employees.
Q49.
What type of income stresses financial dependence and is considered for insurable interest?

a.

Unearned income

b.

Earned income

c.

Passive income

d.

Investment income

Discuss
Answer: (b).Earned income Explanation:Earned income, such as daily wages and salary, stresses financial dependence and is considered for insurable interest.
Q50.
What properties does insurable interest have?

a.

Definite relationship between two parties and legal commitments if future earnings cease

b.

Indefinite relationship between two parties and financial commitments if future earnings cease

c.

Definite relationship between two parties and financial commitments if future earnings increase

d.

Indefinite relationship between two parties and financial commitments if future earnings increase

Discuss
Answer: (a).Definite relationship between two parties and legal commitments if future earnings cease Explanation:Insurable interest has properties of a definite relationship between two parties and financial commitments if future earnings cease.
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