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 11 of 13

Discover more Topics under IC22 Life Insurance Underwriting

Q101.
For which type of insurance covers is very little financial underwriting required?

a.

Small to moderate insurance covers

b.

Moderate to large covers

c.

Business insurance

d.

All of the above

Discuss
Answer: (a).Small to moderate insurance covers Explanation:Very little financial underwriting is required for small to moderate insurance covers.
Q102.
What is required for business insurance?

a.

Memorandum of Association

b.

Articles of Association

c.

Partnership Deed

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:For business insurance, the following documents are required: Memorandum of Association, Articles of Association, Partnership Deed, and Business Accounts.
Q103.
What financial documents are required for self-employed applicants/professionals?

a.

Salary certificates/salary slips for the last 3 to 6 months

b.

Last 6 months' bank statements of the salary account

c.

Audited profit and loss account and balance sheet of the company/firm

d.

Individual income tax returns in the name of the life assured along with computation of income

Discuss
Answer: (d).Individual income tax returns in the name of the life assured along with computation of income Explanation:For self-employed applicants/professionals, the required financial documents are individual income tax returns (ITR) in the name of the life assured along with computation of income.
Q104.
What is the basic financial document required for all cases?

a.

Completely filled proposal form

b.

Last 6 months' bank statements

c.

Audited profit and loss account

d.

Partnership Deed

Discuss
Answer: (a).Completely filled proposal form Explanation:The completely filled proposal form is a basic financial document required for all cases.
Q105.
What is the standard income document required for salaried applicants?

a.

Audited profit and loss account

b.

Individual income tax returns

c.

Salary certificates or salary slips

d.

Partnership Deed

Discuss
Answer: (c).Salary certificates or salary slips Explanation:Salary certificates or salary slips for the last 3 to 6 months are standard income documents required for salaried applicants.
Q106.
Which document can be used to estimate the annual income of the life assured in case the applied sum assured is not justifiable based on income documents?

a.

Partnership questionnaire

b.

Bank statements

c.

Memorandum of Association

d.

Keyman questionnaire

Discuss
Answer: (b).Bank statements Explanation:Bank statements can be used to estimate the annual income of the life assured in case the applied sum assured is not justifiable based on income documents.
Q107.
What is the standard document required for Keyman insurance?

a.

Partnership Deed

b.

Audited profit and loss account

c.

Keyman questionnaire duly signed and stamped by the authorised signatory of the company and countersigned by the key person

d.

Form No. 16 issued by the employer

Discuss
Answer: (c).Keyman questionnaire duly signed and stamped by the authorised signatory of the company and countersigned by the key person Explanation:Keyman questionnaire duly signed and stamped by the authorised signatory of the company and countersigned by the key person is a standard document required for Keyman insurance.
Q108.
What is the standard document required for Partnership insurance?

a.

Partnership Deed

b.

Audited profit and loss account

c.

Keyman questionnaire

d.

Financial questionnaire

Discuss
Answer: (a).Partnership Deed Explanation:Partnership Deed duly attested by the partner authorised to sign the insurance proposal is a standard document required for Partnership insurance.
Q109.
What are the basic financial document requirements for all cases?

a.

Completely filled proposal form, agent's confidential report, financial questionnaire

b.

Individual income tax returns, salary certificates, last 6 months' bank statements

c.

Audited profit and loss account, balance sheet, shareholding pattern

d.

Vehicle registration papers, home loan repayment records, rent receipts

Discuss
Answer: (a).Completely filled proposal form, agent's confidential report, financial questionnaire Explanation:The basic financial document requirements for all cases are completely filled proposal form, agent's confidential report, and financial questionnaire.
Q110.
Which set of financial documents is required for high sum assured cases?

a.

Bank statements and CA certificates

b.

Salary certificates and salary slips

c.

Audited profit and loss account and balance sheet

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:For high sum assured cases, a different set of financial documents is required, such as bank statements, CA certificates, salary certificates, salary slips, audited profit and loss account, balance sheet, etc.
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