Financial Underwriting MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Underwriting, a fundamental topic in the field of IC22 Life Insurance Underwriting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Underwriting 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 Financial Underwriting mcq questions that explore various aspects of Financial Underwriting problems. Each MCQ is crafted to challenge your understanding of Financial Underwriting principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC22 Life Insurance Underwriting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Underwriting MCQs are your pathway to success in mastering this essential IC22 Life Insurance Underwriting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Underwriting. 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 Financial Underwriting knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Underwriting MCQs | Page 10 of 13

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Discuss
Answer: (a).A policy effected by any married man on his own life for the benefit of his wife or children shall be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interest so expressed, and shall not be subject to the control of the life assured (husband), or to his creditors. Explanation:Section 6 of the MWP Act provides that a policy effected by any married man on his own life for the benefit of his wife or children shall be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interest so expressed, and shall not be subject to the control of the life assured (husband), or to his creditors.
Discuss
Answer: (c).One or more children (both natural and adopted) Explanation:Under the MWP Act, the beneficiary can be the wife alone, one or more children (both natural and adopted), or the wife and one or more children jointly.
Q93.
Can the beneficiaries of policies taken under the MWP Act be changed by the proposer at any time?
Discuss
Answer: (b).No Explanation:The beneficiaries of policies taken under the MWP Act once declared cannot be changed at any time by the proposer.
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Answer: (d).None of the above Explanation:The policies taken under the MWP Act cannot be claimed by the other legal heirs or the husband's creditors, nor can the husband claim any benefit. The beneficiaries declared at the time of policy issuance are the only ones entitled to the benefits.
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Answer: (b).Mohammedan proposers can only take up named policies, while Non-Mohammedan proposers can specify the beneficiaries as a class or as a named policy. Explanation:Non-Mohammedan proposers can specify the beneficiaries as a class or as a named policy and provide that the benefit should go to them jointly or to the survivors according to the specified percentages. However, Mohammedan proposers can only take up named policies.
Discuss
Answer: (a).By using an income multiple approach or a need analysis method Explanation:As the policy issued under the MWP Act covers the life of an individual with beneficiaries as mentioned above, it needs to be treated as personal insurance cover for the purpose of financial underwriting. An income multiple approach or a need analysis method can be used to arrive at the cover amount.
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Answer: (c).Application form Explanation:The starting point for financial underwriting is the application form.
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Answer: (d).Information provided in the individual's profile Explanation:For small to moderate insurance covers, the information provided in an individual's profile is sufficient for an underwriter.
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Answer: (b).Business accounts Explanation:For business insurance, the required documents are memorandum of association, articles of association, partnership deed, and business accounts.
Q100.
How long of a salary slip history should be provided to estimate a steady and realistic income?
Discuss
Answer: (b).3-6 months Explanation:When salary slips are requested, there should be at least three to six months' salary slips available to estimate a steady and realistic income.