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 7 of 17

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Q61.
What term is used to refer to the fixed benefit amount in insurance contracts?

a.

Premium

b.

Sum Assured

c.

Bonus

d.

Annuity

Discuss
Answer: (b).Sum Assured Explanation:The fixed benefit amount in insurance contracts is commonly referred to as Sum Assured.
Q62.
What event defines 'Death' in insurance contracts?

a.

Certificate of Birth

b.

Certificate of Insurance

c.

Certificate of Death issued by the Registrar of Births and Deaths

d.

Certificate of Marriage

Discuss
Answer: (c).Certificate of Death issued by the Registrar of Births and Deaths Explanation:In insurance contracts, 'Death' is defined as the death of the life assured, with proof provided by a certificate issued by the Registrar of Births and Deaths.
Q63.
What event defines 'Maturity' in insurance contracts?

a.

Death of the life assured

b.

Survival of the life assured on the exact date of maturity

c.

Payment of premiums

d.

Surrender of the policy

Discuss
Answer: (b).Survival of the life assured on the exact date of maturity Explanation:'Maturity' in insurance contracts refers to the survival of the life assured on the exact date of maturity of the contract.
Q64.
What is a Deferred Annuity?

a.

An annuity where payments are made immediately

b.

An annuity where payments are postponed for a given period

c.

An annuity where payments are made in advance

d.

An annuity where payments are made in arrears

Discuss
Answer: (b).An annuity where payments are postponed for a given period Explanation:A Deferred Annuity is a contract where regular payments are postponed for a given period, with payments commencing at the end of the deferred period.
Q65.
What is the typical characteristic of a participative deferred annuity?

a.

It provides a fixed level of regular income with no bonus additions

b.

It allows surrender benefits after the deferred period

c.

It offers bonus additions to the regular income during the deferred period

d.

It does not provide any surrender benefits

Discuss
Answer: (c).It offers bonus additions to the regular income during the deferred period Explanation:A participative deferred annuity offers bonus additions to the guaranteed level of regular income during the deferred period.
Q66.
What is an Immediate Annuity?

a.

An annuity where payments are postponed for a given period

b.

An annuity where level payments are made until the survival of the policyholder in return for a single advance payment

c.

An annuity where payments are made only after the death of the policyholder

d.

An annuity where payments are made in arrears

Discuss
Answer: (b).An annuity where level payments are made until the survival of the policyholder in return for a single advance payment Explanation:An Immediate Annuity is a contract where level payments are made until the survival of the policyholder in return for a single advance payment.
Q67.
What distinguishes Temporary Annuities from Immediate Annuities?

a.

Temporary Annuities have deferred payments, while Immediate Annuities start payments immediately

b.

Temporary Annuities have lower premiums than Immediate Annuities

c.

Temporary Annuities provide payments for a limited period, while Immediate Annuities provide payments for the policyholder's entire life

d.

Temporary Annuities have higher surrender benefits than Immediate Annuities

Discuss
Answer: (c).Temporary Annuities provide payments for a limited period, while Immediate Annuities provide payments for the policyholder's entire life Explanation:Temporary Annuities provide payments for a specified period, whereas Immediate Annuities provide payments until the survival of the policyholder's entire life.
Q68.
What is the typical characteristic of a participative annuity?

a.

It offers a guaranteed amount without any bonus additions

b.

It allows surrender benefits to be payable

c.

It provides a guaranteed amount plus a bonus added by the insurer

d.

It offers payments only after the death of the policyholder

Discuss
Answer: (c).It provides a guaranteed amount plus a bonus added by the insurer Explanation:A participative annuity provides a guaranteed amount plus a bonus added by the insurer to the income paid to the insured.
Q69.
In joint life or joint survivor annuities, what happens to the payments upon the death of one or both of the annuitants?

a.

Payments continue as normal

b.

Payments cease upon the death of one or both annuitants

c.

Payments increase after the death of one or both annuitants

d.

Payments are reduced after the death of one or both annuitants

Discuss
Answer: (b).Payments cease upon the death of one or both annuitants Explanation:In joint life or joint survivor annuities, payments cease upon the death of one or both of the annuitants.
Q70.
What is the typical payment mode for annuity contracts?

a.

Lump sum

b.

Monthly installments

c.

Yearly installments

d.

Bi-annually

Discuss
Answer: (b).Monthly installments Explanation:Annuity payments are typically made in monthly installments, although they may also be made yearly or bi-annually, depending on the contract terms.
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