Types of Insurance Products Individual MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Types of Insurance Products Individual, 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 Individual 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 Individual mcq questions that explore various aspects of Types of Insurance Products Individual problems. Each MCQ is crafted to challenge your understanding of Types of Insurance Products Individual 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 Individual 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 Individual MCQs | Page 1 of 17

Discover more Topics under IC 92 Actuarial Aspects of Product Development

Q1.
What is the primary purpose of a life insurance policy?

a.

Providing investment returns

b.

Providing financial assistance to the insured and their dependents

c.

Accumulating wealth over time

d.

Ensuring a fixed income after retirement

Discuss
Answer: (b).Providing financial assistance to the insured and their dependents Explanation:A life insurance policy is primarily meant to provide financial assistance to the insured and their dependents in the event of the insured's death.
Q2.
How are premiums typically paid for insurance policies?

a.

Only as a lump sum

b.

Only annually

c.

Either regularly or as a lump sum

d.

Only quarterly

Discuss
Answer: (c).Either regularly or as a lump sum Explanation:Premiums for insurance policies can be paid either regularly (annually, half-yearly, quarterly, or monthly) or as a lump sum.
Q3.
What is the difference between the insured and the policy owner?

a.

There is no difference

b.

The insured is the guarantor of the policy

c.

The policy owner is the participant in the contract

d.

The policy owner is responsible for paying the premiums, while the insured is the participant in the contract

Discuss
Answer: (d).The policy owner is responsible for paying the premiums, while the insured is the participant in the contract Explanation:The policy owner is responsible for paying the premiums, while the insured is a participant in the contract, but not necessarily a party to it.
Q4.
What is a life annuity?

a.

A lump sum payment made by the policyholder to the insurer

b.

A single payment made by the insurer to the policyholder

c.

A series of regular payments made by the insurer to the policyholder as long as they are alive

d.

A payment made by the policyholder to receive investment returns

Discuss
Answer: (c).A series of regular payments made by the insurer to the policyholder as long as they are alive Explanation:A life annuity is a series of regular payments made by the insurer to the policyholder as long as they are alive.
Q5.
What does an annuity contract provide?

a.

Lump sum payments to the policyholder

b.

Variable income over the policyholder’s remaining lifetime

c.

A fixed income after retirement

d.

Lifetime income to the policyholder or their dependents

Discuss
Answer: (d).Lifetime income to the policyholder or their dependents Explanation:An annuity contract provides lifetime income to the policyholder or their dependents, removing the uncertainty of variable income over the policyholder’s remaining lifetime.
Q6.
What is the meaning of 'Life insurance business'?

a.

Providing insurance coverage for accidents

b.

Providing insurance coverage for sickness or disability

c.

Providing insurance coverage for annuities and contracts upon human life

d.

Providing insurance coverage for property damage

Discuss
Answer: (c).Providing insurance coverage for annuities and contracts upon human life Explanation:'Life insurance business' refers to the business of effecting contracts of insurance upon human life, including contracts where the payment of money is assured on death or the happening of any contingency dependent on human life, as well as contracts subject to payment of premiums for a term dependent on human life. It also includes granting annuities upon human life.
Q7.
Which of the following is typically not included in the purview of life insurance business in some countries?

a.

Accident insurance

b.

Health insurance

c.

Property insurance

d.

Annuity-certain and capital redemption

Discuss
Answer: (b).Health insurance Explanation:In some countries, health insurance may not be included in the purview of life insurance business.
Q8.
What does the term 'linked business' mean in the context of life insurance?

a.

Contracts solely dependent on human life

b.

Contracts linked to the performance of specified investments

c.

Contracts providing disability benefits

d.

Contracts providing annuities only

Discuss
Answer: (b).Contracts linked to the performance of specified investments Explanation:'Linked business' refers to contracts where some benefits are either wholly or partly linked to the performance of specified investments.
Q9.
What does 'Life Insurance Business' include according to insurance legislation?

a.

Providing insurance coverage for property damage

b.

Granting disability and accident benefits

c.

Providing insurance coverage for pets

d.

Providing insurance coverage for natural disasters

Discuss
Answer: (b).Granting disability and accident benefits Explanation:'Life Insurance Business' includes granting disability and double or triple indemnity accident benefits, if provided in the contract of insurance.
Q10.
Which of the following is deemed to be included in 'Life Insurance Business' according to insurance legislation?

a.

Providing insurance coverage for legal expenses

b.

Providing insurance coverage for travel expenses

c.

Granting superannuation allowances and annuities

d.

Granting insurance coverage for property damage

Discuss
Answer: (c).Granting superannuation allowances and annuities Explanation:'Life Insurance Business' includes granting superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged in any particular profession, trade or employment or of the dependents of such persons.
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