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.
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.
Q42.
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.
Q43.
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.
Q44.
Who is usually the beneficiary in the case of contracts where the policyholder and life assured are the same?

a.

The assignor

b.

The insurer

c.

The nominee or legal heir

d.

The distributor

Discuss
Answer: (c).The nominee or legal heir Explanation:In contracts where the policyholder and life assured are the same, the beneficiary is usually the nominee or legal heir.
Q45.
What is the role of the nominee in an insurance contract?

a.

To pass the policy money to the insurer

b.

To discharge the insurer's liability and pass the policy money to the legal heirs

c.

To sell the insurance policy to potential buyers

d.

To endorse the insurance contract to assignors

Discuss
Answer: (b).To discharge the insurer's liability and pass the policy money to the legal heirs Explanation:The nominee's role in an insurance contract is to discharge the insurer's liability and pass the policy money to the legal heirs.
Q46.
Who usually has a right over the policy monies to the extent of their interest?

a.

The policyholder

b.

The assignor

c.

The distributor

d.

The insurer

Discuss
Answer: (b).The assignor Explanation:An assignor usually has a right over the policy monies to the extent of their interest.
Q47.
How are insurance products typically sold in the market?

a.

Through direct purchase by individuals from insurers

b.

Through government agencies

c.

Through soliciting by distributors such as agents, brokers, and insurer's salesmen

d.

Through online marketplaces only

Discuss
Answer: (c).Through soliciting by distributors such as agents, brokers, and insurer's salesmen Explanation:Insurance products are typically sold in the market through soliciting by distributors such as agents, brokers, and insurer's salesmen.
Q48.
What is one of the reasons why life insurance products are generally not given priority by individuals?

a.

Lack of awareness about the products and their utility

b.

Limited availability of insurance products in the market

c.

Complexity of insurance products

d.

High cost of insurance products

Discuss
Answer: (a).Lack of awareness about the products and their utility Explanation:One of the reasons why life insurance products are generally not given priority by individuals is the lack of awareness about the products and their utility.
Q49.
What could be another reason for individuals not prioritizing life insurance products?

a.

Lack of financial capabilities

b.

Lack of trust in insurers

c.

Availability of numerous insurance products in the market

d.

Complexity of other financial instruments

Discuss
Answer: (b).Lack of trust in insurers Explanation:Another reason for individuals not prioritizing life insurance products could be the lack of trust in insurers.
Q50.
How does the complexity of insurance products contribute to individuals not prioritizing them?

a.

Individuals find insurance products too simple to understand

b.

Individuals prefer complex products over simple ones

c.

Language in insurance documents is full of technical jargon and not easily understood

d.

Insurance products are simpler compared to other financial instruments

Discuss
Answer: (c).Language in insurance documents is full of technical jargon and not easily understood Explanation:The complexity of insurance products contributes to individuals not prioritizing them because the language in insurance documents is full of technical jargon and not easily understood.
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