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 3 of 13

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Q21.
Why is a steady stream of new entrants important for a group insurance scheme?

a.

To increase administrative costs

b.

To ensure a large proportion of aged members

c.

To prevent the group from becoming stagnant

d.

To decrease the likelihood of lapses in coverage

Discuss
Answer: (c).To prevent the group from becoming stagnant Explanation:A steady stream of new entrants ensures that the group does not become stagnant and helps prevent lapses in coverage.
Q22.
What purpose does the requirement of a large proportion of eligible persons joining the scheme serve?

a.

To increase adverse selection against the insurance company

b.

To ensure a high proportion of impaired lives in the group

c.

To prevent the insurance company from providing coverage

d.

To mitigate adverse selection and prevent a high proportion of impaired lives

Discuss
Answer: (d).To mitigate adverse selection and prevent a high proportion of impaired lives Explanation:A large proportion of eligible persons joining the scheme ensures that no adverse selection is exercised against the insurance company and prevents a high proportion of impaired lives in the group.
Q23.
What is a common feature of superannuation schemes?

a.

Contributions are not pooled in a fund

b.

Benefits are paid out of individual contributions

c.

Benefits are paid in the form of annuities

d.

Benefits are unspecified

Discuss
Answer: (c).Benefits are paid in the form of annuities Explanation:In superannuation schemes, contributions are pooled in a fund, and benefits are paid out in the form of annuities.
Q24.
What distinguishes savings-linked insurance schemes from other types of contracts?

a.

They do not provide insurance benefits

b.

They do not involve savings benefits

c.

They offer fixed and specified benefits

d.

They offer only insurance benefits without savings

Discuss
Answer: (c).They offer fixed and specified benefits Explanation:Savings-linked insurance schemes provide both insurance and savings benefits, with the benefits being fixed and specified.
Q25.
What characterizes employer-employee groups in group insurance?

a.

The employees bear the full cost of the insurance

b.

The employer takes out a Master Policy for the employees

c.

The employees contribute, and the employer bears part of the cost

d.

Only new employees are eligible to join the scheme

Discuss
Answer: (b).The employer takes out a Master Policy for the employees Explanation:In employer-employee groups, the employer takes out a Master Policy for the benefit of their employees.
Q26.
In a non-contributory scheme for employer-employee groups, what is required of eligible employees?

a.

They must contribute to the scheme

b.

They have the option not to join the scheme

c.

All eligible employees must join the scheme

d.

Only a few eligible employees can join the scheme

Discuss
Answer: (c).All eligible employees must join the scheme Explanation:In a non-contributory scheme, all eligible employees must join the scheme, as the employer bears the full cost.
Q27.
What is the purpose of creditor-debtor groups in group insurance?

a.

To cover the outstanding loans granted to creditors

b.

To cover the outstanding loans granted to debtors

c.

To provide insurance benefits to creditors

d.

To cover the losses incurred by debtors

Discuss
Answer: (b).To cover the outstanding loans granted to debtors Explanation:Creditor-debtor groups cover the outstanding amount of loans granted to debtors, and in case of the debtor's death, the claim amount goes towards repayment of the outstanding loan.
Q28.
Who typically takes out the Master Policy in creditor-debtor groups?

a.

The debtor

b.

The creditor

c.

The employer

d.

The co-operative credit society

Discuss
Answer: (b).The creditor Explanation:In creditor-debtor groups, the Master Policy is taken out by the creditor to cover the outstanding loans granted to debtors.
Q29.
What types of professionals may form professional groups for insurance purposes?

a.

Only doctors and lawyers

b.

Only engineers and journalists

c.

Associations of various professionals like doctors, lawyers, accountants, engineers, journalists, pilots, etc.

d.

Only individuals from weaker sections of society

Discuss
Answer: (c).Associations of various professionals like doctors, lawyers, accountants, engineers, journalists, pilots, etc. Explanation:Professional groups may include associations of various professionals such as doctors, lawyers, accountants, engineers, journalists, pilots, etc.
Q30.
What is an insured group scheme?

a.

A policy for individuals based on their personal needs

b.

A contract offered to specific individuals based on health criteria

c.

A group product designed and offered by an insurer to cover a group of people

d.

A financial plan offered by banks to their high-net-worth clients

Discuss
Answer: (c).A group product designed and offered by an insurer to cover a group of people Explanation:An insured group scheme is a group product designed and offered by an insurer, providing coverage to a group of people who share a common attribute, through a single contract.
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