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 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.
Q42.
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.
Q43.
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.
Q44.
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.
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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