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 6 of 13

Discover more Topics under IC22 Life Insurance Underwriting

Q51.
Is an HUF eligible for tax deductions and exemptions?

a.

Yes

b.

No

c.

It depends on the type of tax law

d.

None of the above

Discuss
Answer: (a).Yes Explanation:An HUF is eligible for all the deductions and exemptions as described under the tax laws.
Q52.
Can policies be financed from the HUF income for the benefits of only one member?

a.

Yes

b.

No

c.

It depends on the decision of the Karta

d.

None of the above

Discuss
Answer: (b).No Explanation:Neither the 'karta' nor any other member of the HUF can take policies to be financed from the HUF income, seeking the benefits only for himself or his immediate dependents.
Q53.
Who will be the owner of a policy affected under HUF?

a.

The Karta

b.

The coparceners

c.

The member who benefits from the policy

d.

HUF itself

Discuss
Answer: (d).HUF itself Explanation:A policy affected under HUF does not have the provision for appointment of nominee etc. as HUF will be the owner of the policy.
Q54.
Can an HUF earn income from investment of its funds?

a.

Yes

b.

No

c.

It depends on the source of the income

d.

None of the above

Discuss
Answer: (a).Yes Explanation:Since the HUF is a separate entity, it can earn income from investment of the HUF's funds, business profits, house property, capital gain etc., except income from salary.
Q55.
How is the insurance cover amount for an HUF policy calculated?

a.

Based on the age of the Karta

b.

Based on the number of coparceners

c.

Based on the total income of the HUF

d.

Based on the number of policies bought

Discuss
Answer: (c).Based on the total income of the HUF Explanation:Generally, a multiple of 10 is applied to the income of an HUF to arrive at the total financial eligibility for policies sourced through HUF.
Q56.
What is the Married Women's Property (MWP) Act?

a.

It is an Indian law passed in 1874 which allows a married man to name an insurance policy in the benefit of his wife and children

b.

It is an Indian law passed in 1874 which allows a married woman to name an insurance policy in the benefit of her husband and children

c.

It is an Indian law passed in 1874 which allows a married man to name an insurance policy in the benefit of his extended family

d.

It is an Indian law passed in 1874 which allows a married woman to name an insurance policy in the benefit of her extended family

Discuss
Answer: (a).It is an Indian law passed in 1874 which allows a married man to name an insurance policy in the benefit of his wife and children Explanation:The Married Women's Property Act is an Indian law passed in 1874 which allows a married man to name an insurance policy in the benefit of his wife and children.
Q57.
What is the provision of Section 6 of the MWP Act?

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.

b.

A policy effected by any married woman on her own life for the benefit of her husband or children shall be deemed to be a trust for the benefit of her husband, or of her husband and children, or any of them according to the interest so expressed, and shall not be subject to the control of the life assured (wife), or to her creditors.

c.

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 extended family, 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.

d.

A policy effected by any married woman on her own life for the benefit of her extended family shall be deemed to be a trust for the benefit of her extended family, or any of them according to the interest so expressed, and shall not be subject to the control of the life assured (wife), or to her creditors.

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.
Q58.
Who can be the beneficiary under the MWP Act?

a.

The husband alone

b.

The wife and one or more children jointly

c.

One or more children (both natural and adopted)

d.

All of the above

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.
Q59.
Can the beneficiaries of policies taken under the MWP Act be changed by the proposer at any time?

a.

Yes

b.

No

c.

Depends on Insurer

d.

None of the above

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.
Q60.
Who can claim the benefits of policies taken under the MWP Act?

a.

The legal heirs of the life assured

b.

The creditors of the life assured

c.

The employer of the life assured

d.

None of the above

Discuss
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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