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 7 of 13

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Q61.
Who is typically eligible for insurance cover in a group insurance scheme?

a.

Permanent full-time employees who are actively at work on the date they become eligible for insurance.

b.

Part-time employees who have been with the company for at least one year.

c.

Temporary employees who are on sick leave on the date they become eligible for insurance.

d.

Independent contractors hired by the employer for specific projects.

Discuss
Answer: (a).Permanent full-time employees who are actively at work on the date they become eligible for insurance. Explanation:In a group insurance scheme, typically only permanent full-time employees who are actively at work on the date they become eligible for insurance are eligible for insurance cover. This eligibility criterion ensures that the insurance coverage is provided to employees who are actively engaged in the workforce and are likely to benefit from the insurance protection. Temporary or part-time employees, as well as independent contractors, may not meet the eligibility criteria for coverage under the group insurance scheme.
Q62.
What additional eligibility condition may apply for employees to qualify for insurance coverage?

a.

They must not have been absent from work due to sickness for more than 3 weeks per year during the previous 2 years.

b.

They must have completed at least one year of continuous service with the employer.

c.

They must be younger than the retirement age, typically around 60 years.

d.

They must provide evidence of insurability at the time of joining the scheme.

Discuss
Answer: (a).They must not have been absent from work due to sickness for more than 3 weeks per year during the previous 2 years. Explanation:An additional eligibility condition that may apply for employees to qualify for insurance coverage is that they must not have been absent from work due to sickness for more than a specified period, such as 3 weeks per year during the previous 2 years. This condition helps ensure that employees are actively engaged in their work and have a relatively stable health status, reducing the risk of adverse selection for the insurer.
Q63.
What is the purpose of a waiting period in a group insurance scheme?

a.

To delay the eligibility of new employees for insurance coverage.

b.

To allow time for the insurer to evaluate the health status of new employees.

c.

To provide a grace period for premium payments.

d.

To ensure that new employees are committed to the scheme before joining.

Discuss
Answer: (b).To allow time for the insurer to evaluate the health status of new employees. Explanation:The purpose of a waiting period in a group insurance scheme is to allow time for the insurer to evaluate the health status of new employees before they become eligible for insurance coverage. During this waiting period, typically a month, new employees are not immediately covered by the insurance scheme. Instead, they must wait until the waiting period expires to join the scheme, allowing the insurer to assess any potential risks associated with insuring the new members.
Q64.
When does coverage typically cease in a group insurance scheme?

a.

When the employee reaches a certain age or retires.

b.

When the employer fails to pay the due premium within the grace period.

c.

When the employee is absent from work due to illness for an extended period.

d.

When the employee terminates employment with the company.

Discuss
Answer: (d).When the employee terminates employment with the company. Explanation:Coverage typically ceases in a group insurance scheme when the employee terminates employment with the company. This can occur due to various reasons, such as resignation, termination, or retirement. When an employee leaves the company, their eligibility for insurance coverage under the group scheme ends, and they no longer receive the benefits provided by the policy. It's important for both the insurer and the employer to clarify the conditions under which coverage ceases to avoid any ambiguity or disputes regarding insurance benefits.
Q65.
How is disability handled in group insurance schemes in some developed countries?

a.

Disability provisions are offered for all employees regardless of their salary level.

b.

Disability coverage continues for up to 6 months if the employee receives a regular salary.

c.

Disability coverage is not offered at all, regardless of the employee's circumstances.

d.

Disability coverage is extended indefinitely if the employee remains on the company's payroll.

Discuss
Answer: (b).Disability coverage continues for up to 6 months if the employee receives a regular salary. Explanation:In some developed countries, disability in group insurance schemes is handled by offering disability coverage for up to 6 months if the employee continues to receive a regular salary. This approach provides temporary financial protection for employees who become disabled and are unable to work for a limited period. After the specified period, if the disability persists, further arrangements may be made, such as long-term disability insurance or other forms of assistance.
Q66.
Which approach provides extended death benefit coverage for employees who become totally disabled prior to retirement age?

a.

Continuing life coverage until age 60 without premium payment for disabled employees.

b.

Pre-paying a percentage of the life benefit over a period for permanently disabled employees.

c.

Providing one year of continued life coverage if insurance terminates prior to retirement age for disabled employees.

d.

Offering disability provisions for all employees regardless of their circumstances.

Discuss
Answer: (c).Providing one year of continued life coverage if insurance terminates prior to retirement age for disabled employees. Explanation:The approach that provides extended death benefit coverage for employees who become totally disabled prior to retirement age is to offer one year of continued life coverage if insurance terminates before retirement age for disabled employees. This provision ensures that employees who are totally disabled and unable to work still receive life coverage for a specified period to provide financial protection to their beneficiaries in the event of their death.
Q67.
What is typically required for continued waiver of premium in group insurance schemes?

a.

Proof of disability provided by the employee's physician.

b.

Annual renewal of the group insurance policy by the employer.

c.

Monthly payroll deductions for premium payments.

d.

Annual proof of disability for continued waiver of premium.

Discuss
Answer: (d).Annual proof of disability for continued waiver of premium. Explanation:Typically, for continued waiver of premium in group insurance schemes, annual proof of disability is required. This means that the insured employee must provide evidence of their disability on an annual basis to continue receiving the waiver of premium benefit. This requirement helps ensure that the waiver of premium is only granted to employees who remain totally disabled and unable to work, as specified in the insurance policy terms.
Q68.
How does a new group term plan come into existence?

a.

By submitting Form IRDA-Life-Non Linked-NP to the insurer.

b.

By obtaining approval from the appointed actuary.

c.

By introducing the product to the market with a brand name.

d.

By providing terms and conditions for the product's coverage.

Discuss
Answer: (a).By submitting Form IRDA-Life-Non Linked-NP to the insurer. Explanation:A new group term plan comes into existence by submitting Form IRDA-Life-Non Linked-NP to the insurer. This form, prescribed by IRDAI of India, contains various details about the group term product, including the insurer's name, appointed actuary, brand name of the product, introduction date, terms and conditions of coverage, target demographics, and marketing duration. Submitting this form to the insurer is a crucial step in the process of introducing a new group term plan to the market.
Q69.
Which of the following is NOT typically included in the general description of a group insurance product?

a.

Contingencies under which benefits would be payable and how they would be determined.

b.

Product features such as participation status, benefits payable on death or survival, and non-forfeiture benefits.

c.

Target market and distribution channels for marketing the product.

d.

Treatment of different classes for underwriting purposes, such as gender, smoking status, and entry ages.

Discuss
Answer: (c).Target market and distribution channels for marketing the product. Explanation:The general description of a group insurance product typically includes contingencies under which benefits would be payable and how they would be determined, as well as product features such as participation status, benefits payable on death or survival, and non-forfeiture benefits. It also covers aspects like treatment of different classes for underwriting purposes. However, details about the target market and distribution channels for marketing the product are usually provided separately and are not typically included in the general description of the product.
Q70.
Which of the following is a requirement specified in the Form IRDA-Life-Non Linked-NP for insurers to file a group term product to IRDA of India?

a.

Description of the product's features, including participation status and non-forfeiture benefits.

b.

Minimum and maximum entry age, policy term, and maturity age.

c.

Annual proof of disability for continued waiver of premium.

d.

Restrictions on travel outside India and future occupation.

Discuss
Answer: (b).Minimum and maximum entry age, policy term, and maturity age. Explanation:The Form IRDA-Life-Non Linked-NP requires insurers to provide details such as the minimum and maximum entry age, policy term, and maturity age for the group term product. This includes specifying the age limits for individuals to enter the insurance scheme, the duration of the policy, and the maximum age at which the policy can mature. These details are essential for the proper pricing and administration of the group term product and must be accurately filed with IRDA of India.
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