Types of Insurance Products Group MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Types of Insurance Products Group, 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 Types of Insurance Products Group 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 Types of Insurance Products Group mcq questions that explore various aspects of Types of Insurance Products Group problems. Each MCQ is crafted to challenge your understanding of Types of Insurance Products Group 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 Types of Insurance Products Group MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

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Types of Insurance Products Group MCQs | Page 13 of 13

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Q121.
What is the primary purpose of offering prospective experience rating in group insurance?

a.

To reduce administrative costs

b.

To encourage group loyalty

c.

To ensure accurate premium quoting

d.

To facilitate profit sharing

Discuss
Answer: (c).To ensure accurate premium quoting Explanation:The primary purpose of offering prospective experience rating in group insurance is to quote a more accurate insurance premium for the group, based on its expected claims experience.
Q122.
Which feature of group insurance helps in reducing significant costs and is a time-saving feature?

a.

Guaranteed renewability

b.

Prospective experience rating

c.

Profit sharing

d.

Full Cycle Loading (FCL)

Discuss
Answer: (d).Full Cycle Loading (FCL) Explanation:Full Cycle Loading (FCL) helps in reducing significant costs and is a time-saving feature in group insurance, allowing for efficient processing and administration of policies.
Q123.
What is the main attraction of group insurance?

a.

Ability to cover large numbers of individuals

b.

Profit-sharing incentives

c.

Guaranteed renewability

d.

Reduction in administrative costs

Discuss
Answer: (a).Ability to cover large numbers of individuals Explanation:The main attraction of group insurance is the ability to cover large numbers of individuals in a cost-efficient manner, providing coverage to a group as a whole rather than individual policies.
Q124.
What term refers to allowing a group to participate in the good or adverse claims experience it will have at the end of the insurance term?

a.

Prospective experience rating

b.

Profit sharing

c.

Retrospective experience rating

d.

Full Cycle Loading (FCL)

Discuss
Answer: (c).Retrospective experience rating Explanation:Retrospective experience rating refers to allowing a group to participate in the good or adverse claims experience it will have at the end of the insurance term, often referred to as profit sharing.
Q125.
Which of the following can be treated as groups for the purpose of insurance contract?

i. A group of persons residing in a housing colony—where some of them are tenants.
ii. A trade union of taxi drivers in a city, e.g. Mumbai.
iii. The members of a professional group, such as Institute of Chartered Accountants of India.
iv. The parents of students of a school.

a.

Options i and iv

b.

Options ii and iii

c.

Options i and ii

d.

Options iii and iv

Discuss
Answer: (b).Options ii and iii Explanation:A trade union of taxi drivers in a city and members of a professional group can be treated as groups for the purpose of insurance contract.
Q126.
Which of the following is not a type of group insurance contracts offered by insurers?

a.

Group Gratuity Contract

b.

Group Savings Linked Insurance Contract

c.

Group Health Insurance Contract

d.

Group Benefit Contract

Discuss
Answer: (d).Group Benefit Contract Explanation:Group benefit contract is not a type of group insurance contract offered by insurers.
Q127.
While determining the extent to which the premium rate could be reduced or increased to reflect the new claim experience of the concerned group, which of the following combination of factors are considered by actuaries?

i. Size of the group
ii. Age of the group members
iii. Occupation of the group members
iv. Number of policy years The options are:

a.

Options i and iv

b.

Options i and ii

c.

Options ii and iv

d.

Options iii and iv

Discuss
Answer: (a).Options i and iv Explanation:Factors ii and iii are not relevant for the purpose of determining the increase / decrease in premium rate.
Q128.
In which of the following type of group contracts will the additional benefit i.e. the accumulated amount of contributions be payable?

a.

Group Superannuation (Pension) Contract

b.

Group Term Insurance Contract

c.

Group Savings Linked Insurance Contract

d.

Group Benefit Contract

Discuss
Answer: (c).Group Savings Linked Insurance Contract Explanation:This is one of the features of the Group Savings Linked Insurance Contracts.
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