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 17 of 17

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Q161.
Bonus declared in the last year was 3% of SA. In the current year, it is 10% of the amount of bonus declared in the last year. If Sum Assured (SA) is Rs 1000, what would be the Compound Reversionary Bonus (CRB) for the current year?

a.

Rs 33

b.

Rs 100

c.

Rs 36

d.

Rs 30

Discuss
Answer: (a).Rs 33 Explanation:If Rs. 30 per 1000 was declared as the vested bonus for a policy year, then the vested bonus (CRB) for the current year is Rs. 33 per 1000/- (30 x (1.10) = 33)
Q162.
Which of the following is not an example of alteration?

a.

Reduction in policy term (increase in policy term is generally not allowed, as it could cause reduced premiums)

b.

Change from one mode of premium payment to another (e.g. from monthly mode to yearly mode)

c.

Change from whole life plan to endowment plan (this is rare, but insurers do permit)

d.

Discounting of policy in the last year [usually with no penalties]

Discuss
Answer: (d).Discounting of policy in the last year [usually with no penalties] Explanation:Discounting of policy in the last year [usually with no penalties]. This is an example of ‘Options’; others are examples of ‘Alterations’.
Q163.
Pension is payable to a member at the rate of Rs. 2000/- p.m. as long as he is alive, and on his death, his spouse is entitled to a pension of Rs. 1000/- p.m., which is payable as long as the spouse is alive. What annuities are suitable for this member?

a.

Immediate annuity with Survival Benefits & Increasing immediate annuity

b.

Annuity certain for n years and for life thereafter

c.

Joint Life annuity

d.

Last survivor annuity & single life annuity

Discuss
Answer: (d).Last survivor annuity & single life annuity Explanation:As long as the member is alive, Rs. 2000/- p.m. is received (Rs. 1000 from LSA and Rs. 1000 from SLA). On the member’s death, SLA would cease, and Rs. 1000 would be payable to the spouse from LSA as long as the spouse is alive. If the spouse dies before the member’s death, the member would receive Rs. 2000/- from LSA and SLA as long as he is alive, and both contracts get terminated on his death.
Q164.
If Mr. Sam became permanently disabled due to an accident, which rider will provide him additional benefits?

a.

Accident Benefit Rider

b.

Permanent Disability Rider

c.

Term Rider

d.

Critical Illness Rider

Discuss
Answer: (b).Permanent Disability Rider Explanation:If Mr. Sam became permanently disabled due to an accident, then the permanent disability rider will provide him additional benefits.
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