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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Types of Insurance Products Individual. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Types of Insurance Products Individual knowledge to the test? Let's get started with our carefully curated MCQs!

Types of Insurance Products Individual MCQs | Page 15 of 17

Discover more Topics under IC 92 Actuarial Aspects of Product Development

Q141.
Which account in a unit linked contract belongs to the policyholder?

a.

Unit account

b.

Non-unit account

c.

Fund account

d.

NAV account

Discuss
Answer: (a).Unit account Explanation:The unit account in a unit linked contract belongs to the policyholder and is where units are allocated at a specified price known as the Net Asset Value (NAV).
Q142.
What is the portion of the premium allocated to the unit account referred to as?

a.

Investment amount

b.

Policyholder's share

c.

Allocated amount

d.

NAV amount

Discuss
Answer: (c).Allocated amount Explanation:The portion of the premium allocated to the unit account is referred to as the allocated amount.
Q143.
Which expenses are met from the non-unit accounts in unit linked contracts?

a.

Administrative expenses only

b.

Mortality and rider benefits only

c.

Charges, commissions, and other contingencies

d.

Investment expenses only

Discuss
Answer: (c).Charges, commissions, and other contingencies Explanation:Expenses such as charges, commissions, and other contingencies are met from the non-unit accounts in unit linked contracts.
Q144.
When are surrenders typically allowed in unit linked contracts as per current regulations?

a.

After 2 years of policy inception

b.

After 3 years of policy inception

c.

After 4 years of policy inception

d.

After 5 years of policy inception

Discuss
Answer: (d).After 5 years of policy inception Explanation:Surrenders are typically allowed after 5 years of policy inception as per current regulations. If the policy lapses before 5 years, a surrender penalty may be levied.
Q145.
Which statement accurately describes the purpose of insurance and annuity products?

a.

Insurance and annuity products primarily focus on providing investment opportunities.

b.

Insurance and annuity products primarily focus on offering protection against risks.

c.

Insurance and annuity products primarily focus on providing tax benefits.

d.

Insurance and annuity products primarily focus on offering mortgage loans.

Discuss
Answer: (b).Insurance and annuity products primarily focus on offering protection against risks. Explanation:Insurance and annuity products satisfy the protection needs of the policyholders by offering coverage against various risks.
Q146.
What does a term insurance policy cover?

a.

Only the risk of surviving the policy term

b.

Only the risk of dying within the policy term

c.

Both the risk of dying and the risk of surviving the policy term

d.

Only the risk of illness within the policy term

Discuss
Answer: (b).Only the risk of dying within the policy term Explanation:Term insurance policy covers only the risk of dying within the policy term.
Q147.
What benefit does an Endowment Assurance contract provide?

a.

Death benefit only

b.

Survival benefit only

c.

Both death benefit and survival benefit

d.

Neither death benefit nor survival benefit

Discuss
Answer: (c).Both death benefit and survival benefit Explanation:Endowment Assurance contracts provide death benefit if death occurs and a survival benefit on the date of maturity if death does not occur.
Q148.
What is the primary characteristic of an annuity product?

a.

It provides benefits only on the event of death.

b.

It provides benefits only on the event of survival at a stipulated time interval.

c.

It provides benefits only on the event of illness.

d.

It provides benefits only on the event of an accident.

Discuss
Answer: (b).It provides benefits only on the event of survival at a stipulated time interval. Explanation:An annuity product provides benefit on the event of survival at a stipulated time interval, besides other benefits.
Q149.
What are 'Riders' or 'Add-ons' in insurance contracts?

a.

Mandatory benefits attached to the main contract

b.

Additional benefits that cannot be attached to the main contract

c.

Optional benefits that cannot be attached to the main contract

d.

Optional benefits that could be attached to the main contract

Discuss
Answer: (d).Optional benefits that could be attached to the main contract Explanation:'Riders' or 'Add-ons' are additional benefits that are optional for the policyholder and could be attached to the main contract.
Q150.
What option do some contracts provide to policyholders?

a.

Option to surrender the policy at any time

b.

Option to receive a cash bonus every year

c.

Option to convert the policy into a different type or alter its terms

d.

Option to increase the premium amount

Discuss
Answer: (c).Option to convert the policy into a different type or alter its terms Explanation:Some contracts give the facility of an option to convert the existing policy into a different type of policy, or to alter the terms and conditions of the existing policy.
Page 15 of 17