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 7 of 8

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Q61.
What is the recommended insurance product for retired employees?

a.

Endowment Assurances

b.

Term Insurance Contracts

c.

Immediate Annuity Contracts

d.

Deferred Assurances

Discuss
Answer: (c).Immediate Annuity Contracts Explanation:Retired employees are recommended to opt for Immediate Annuity Contracts to provide old age income and to meet funeral expenses.
Q62.
Which type of insurance product is suitable for single persons?

a.

Term Insurance Contracts

b.

Endowment Assurances

c.

Unit Linked Plans

d.

Deferred Annuity Contracts

Discuss
Answer: (d).Deferred Annuity Contracts Explanation:Single persons would typically opt for Deferred Annuity Contracts for old age income or to meet funeral expenses.
Q63.
What type of insurance product is recommended for borrowers?

a.

Term Insurance

b.

Endowment Assurances

c.

Money Back Plans

d.

Immediate Annuity Contracts

Discuss
Answer: (a).Term Insurance Explanation:Borrowers are recommended to opt for Term Insurance or Decreasing Term Insurance (Mortgage insurance policies) to provide security for the outstanding loan in case of death or permanent disability.
Q64.
Which type of insurance product is suitable for casual workers or unorganized workers?

a.

Endowment Assurances

b.

Term Insurance Contracts with Accident Benefits

c.

Deferred Assurances

d.

Immediate Annuity Contracts

Discuss
Answer: (b).Term Insurance Contracts with Accident Benefits Explanation:Casual workers or unorganized workers would typically opt for Term Insurance Contracts with Accident Benefits to receive lump sum payments for dependents or to meet funeral expenses.
Q65.
Which statement accurately defines insurance?

a.

Insurance is a promise given by the insurer that grants protection to the insured against a specific loss under certain conditions.

b.

Insurance contracts are legal contracts designed to meet the customer’s need of a secure financial future.

c.

Only persons of sound mind, majority age and those permitted by law can enter into an insurance contract.

d.

Insurable interest ensures that the proposer does not gain undue financial advantage by effecting a contract of insurance.

Discuss
Answer: (a).Insurance is a promise given by the insurer that grants protection to the insured against a specific loss under certain conditions. Explanation:Statement a accurately defines insurance as a promise given by the insurer to protect the insured against a specific loss under certain conditions.
Q66.
What is the purpose of insurance contracts?

a.

To promise financial protection to the insured against any loss.

b.

To ensure that the insured gains financial advantage.

c.

To meet the customer’s need of a secure financial future.

d.

To restrict entry into insurance contracts to specific individuals.

Discuss
Answer: (c).To meet the customer’s need of a secure financial future. Explanation:Insurance contracts are designed to meet the customer’s need of a secure financial future, as stated in statement b.
Q67.
Who is eligible to enter into an insurance contract?

a.

Only persons of sound mind, majority age, and those permitted by law

b.

Only individuals with financial advantage

c.

Only individuals with insurable interest

d.

Only individuals with high awareness about insurance products

Discuss
Answer: (a).Only persons of sound mind, majority age, and those permitted by law Explanation:Only persons of sound mind, majority age, and those permitted by law can enter into an insurance contract.
Q68.
What does insurable interest ensure?

a.

The insured gains undue financial advantage by effecting a contract of insurance.

b.

The proposer gains undue financial advantage by effecting a contract of insurance.

c.

The insured does not gain undue financial advantage by effecting a contract of insurance.

d.

The proposer does not gain undue financial advantage by effecting a contract of insurance.

Discuss
Answer: (d).The proposer does not gain undue financial advantage by effecting a contract of insurance. Explanation:Insurable interest ensures that the proposer does not gain undue financial advantage by effecting a contract of insurance.
Q69.
Why are insurance products mostly sold and rarely purchased?

a.

Due to high awareness among consumers

b.

Due to the simplicity of insurance products

c.

Mainly because of lack of awareness and several other factors

d.

Mainly because of the high demand for insurance products

Discuss
Answer: (c).Mainly because of lack of awareness and several other factors Explanation:Insurance products are mostly sold and rarely purchased mainly because of lack of awareness and several other factors.
Q70.
Who among the below is not allowed to buy an insurance product?

a.

A senior citizen

b.

A person above 18 years of age

c.

A person below 18 years of age

d.

An unmarried woman

Discuss
Answer: (c).A person below 18 years of age Explanation:A minor cannot enter into a contract of insurance. He can only be the beneficiary.
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