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 10 of 17

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Q91.
What event triggers the benefits provided by the Critical Illness Rider?

a.

Death of the policyholder

b.

Diagnosis of any illness

c.

Affliction with specified critical illness

d.

Permanent disability

Discuss
Answer: (c).Affliction with specified critical illness Explanation:The Critical Illness Rider provides benefits upon the policyholder being diagnosed with specified critical illnesses outlined in the insurance contract.
Q92.
What is the primary benefit of the Waiver of Premium Rider?

a.

Increased death benefit

b.

Cash payout upon diagnosis of critical illness

c.

Waiving of future premiums in specific situations

d.

Investment opportunities with premium payments

Discuss
Answer: (c).Waiving of future premiums in specific situations Explanation:The Waiver of Premium Rider ensures that future premium payments are waived under certain circumstances, such as the death of the proposer or permanent disability.
Q93.
According to IRDAI regulations, what is the maximum percentage of the Basic Life Insurance premium that can be allocated to riders?

a.

20%

b.

30%

c.

50%

d.

100%

Discuss
Answer: (b).30% Explanation:As per IRDAI regulations, the total rider premium (excluding health or Critical Illness riders in case of term or group product) cannot exceed 30% of the Basic Life Insurance premium.
Q94.
What is the limit for the Rider Sum Assured in relation to the Sum Assured of Basic Life Insurance Benefit?

a.

It can exceed the Sum Assured of Basic Life Insurance Benefit

b.

It cannot exceed the Sum Assured of Basic Life Insurance Benefit

c.

It must be at least twice the Sum Assured of Basic Life Insurance Benefit

d.

It must be equal to the Basic Life Insurance premium

Discuss
Answer: (b).It cannot exceed the Sum Assured of Basic Life Insurance Benefit Explanation:According to IRDAI regulations, the Rider Sum Assured cannot exceed the Sum Assured of Basic Life Insurance Benefit.
Q95.
Which type of insurance riders are exempt from the 30% limit on rider premium allocation?

a.

Critical Illness riders

b.

Waiver of Premium riders

c.

Health riders

d.

Disability riders

Discuss
Answer: (c).Health riders Explanation:Health or Critical Illness riders in case of term or group products are exempt from the 30% limit on rider premium allocation, as per IRDAI regulations.
Q96.
What is the primary purpose of options offered in insurance contracts?

a.

To increase the premium amount

b.

To limit the coverage period

c.

To convert the existing policy into a different type or alter its terms

d.

To decrease the benefits provided

Discuss
Answer: (c).To convert the existing policy into a different type or alter its terms Explanation:Options in insurance contracts provide policyholders with the flexibility to convert their existing policy into a different type or alter its terms according to their changing needs.
Q97.
Which of the following options allows policyholders to increase their insurance cover without undergoing a medical examination?

a.

Paid-up option

b.

Convertible Term insurance plan

c.

Maturity proceeds option

d.

Increase in insurance cover option

Discuss
Answer: (d).Increase in insurance cover option Explanation:The increase in insurance cover option enables policyholders to raise their coverage amount without requiring a medical examination during the period of the contract.
Q98.
What does the paid-up option in insurance contracts entail?

a.

Termination of the policy without any benefits

b.

Conversion of the policy into an annuity plan

c.

Reduction of the sum assured with no further future premiums

d.

Automatic renewal of the policy

Discuss
Answer: (c).Reduction of the sum assured with no further future premiums Explanation:The paid-up option allows policyholders to maintain their policy in force for a reduced sum assured without having to pay any further future premiums.
Q99.
What alteration option involves changing the ownership of the policy?

a.

Maturity proceeds option

b.

Surrendering the policy partially

c.

Changing the nominee

d.

Changing the ownership of the policy

Discuss
Answer: (d).Changing the ownership of the policy Explanation:Changing the ownership of the policy allows the policyholder to transfer the ownership rights to another individual, not the life assured.
Q100.
In a group insurance policy, what option is typically offered to individual members who leave the group?

a.

Convertible Term insurance plan

b.

Paid-up option

c.

Individual policy with the same terms and conditions

d.

Surrendering the policy partially

Discuss
Answer: (c).Individual policy with the same terms and conditions Explanation:Individual members who leave a group insurance policy are often offered an individual policy with the same terms and conditions as the group policy they were part of.
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