Life Underwriting Principles and Concepts Part 2 MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Life Underwriting Principles and Concepts Part 2, 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 Life Underwriting Principles and Concepts Part 2 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 Life Underwriting Principles and Concepts Part 2 mcq questions that explore various aspects of Life Underwriting Principles and Concepts Part 2 problems. Each MCQ is crafted to challenge your understanding of Life Underwriting Principles and Concepts Part 2 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 Life Underwriting Principles and Concepts Part 2 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 Life Underwriting Principles and Concepts Part 2. 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 Life Underwriting Principles and Concepts Part 2 knowledge to the test? Let's get started with our carefully curated MCQs!

Life Underwriting Principles and Concepts Part 2 MCQs | Page 10 of 14

Discover more Topics under IC22 Life Insurance Underwriting

Q91.
What is the purpose of the total permanent disability benefit rider (TPD)?

a.

To waive the premium payments in case of accidental death

b.

To provide an additional sum assured in case of total permanent disability

c.

To provide a lump-sum payment upon diagnosis of a critical illness

d.

To provide an additional sum assured in case of death

Discuss
Answer: (b).To provide an additional sum assured in case of total permanent disability Explanation:The total permanent disability benefit rider (TPD) is designed to provide an additional sum assured in case of total permanent disability.
Q92.
What is the purpose of the term rider?

a.

To provide coverage for a specific term within the overall life insurance policy

b.

To waive premium payments in case of disability

c.

To provide additional coverage in case of accidental death

d.

To provide coverage for critical illnesses

Discuss
Answer: (a).To provide coverage for a specific term within the overall life insurance policy Explanation:The purpose of a term rider is to provide coverage for a specific term within the overall life insurance policy. This means that the rider provides an additional level of coverage for a set period of time, such as 10 or 20 years. This is different from the base life insurance policy, which typically provides coverage for the life of the insured. Adding a term rider can be a cost-effective way to increase the overall coverage for a specific period of time, such as during the years when children are still dependent on the insured's income.
Q93.
What is the purpose of the Waiver of Premium (WoP) rider?

a.

To waive off premium payments in case of the permanent disability or death of the parent paying premium in children plans

b.

To enhance the risk cover against accidents

c.

To provide coverage for total permanent disability benefit

d.

To provide coverage for critical illness

Discuss
Answer: (a).To waive off premium payments in case of the permanent disability or death of the parent paying premium in children plans Explanation:The purpose of the Waiver of Premium (WoP) rider is to waive off premium payments in case of the permanent disability or death of the parent paying premium in children plans.
Q94.
When is the Waiver of Premium (WoP) rider more popularly used?

a.

With term plans

b.

With health plans

c.

With child plans

d.

With retirement plans

Discuss
Answer: (c).With child plans Explanation:The Waiver of Premium (WoP) rider is more popularly used with child plans.
Q95.
What happens if the life insured (parent) dies in a child plan with the Waiver of Premium (WoP) rider?

a.

The policy will continue and future due payments will be paid by the insurance company

b.

The policy will terminate and no benefits will be paid

c.

The nominee will get a lump sum amount

d.

The premiums will be reduced but not waived off

Discuss
Answer: (a).The policy will continue and future due payments will be paid by the insurance company Explanation:If the life insured (parent) dies in a child plan with the Waiver of Premium (WoP) rider, the policy will continue and future due payments will be paid by the insurance company.
Q96.
What is the purpose of the Accidental Death Benefit (ADB) rider?

a.

To waive off premium payments in case of the permanent disability or death of the parent paying premium in children plans

b.

To enhance the risk cover against accidents

c.

To provide coverage for total permanent disability benefit

d.

To provide coverage for critical illness

Discuss
Answer: (b).To enhance the risk cover against accidents Explanation:The purpose of the Accidental Death Benefit (ADB) rider is to enhance the risk cover against accidents.
Q97.
What is the maximum amount of benefit offered by the Accidental Death Benefit (ADB) rider?

a.

It can be equal to the basic death benefit

b.

It can be lower than the base sum assured

c.

It can be higher than the base sum assured

d.

It can be any amount specified by the policyholder

Discuss
Answer: (a).It can be equal to the basic death benefit Explanation:The maximum amount of benefit offered by the Accidental Death Benefit (ADB) rider can be equal to the basic death benefit (i.e. additional sum assured) or lower, but never higher than the base sum assured.
Q98.
What is the underwriter evaluating while assessing the accident risk and granting the ADB rider benefit?

a.

The policyholder's age

b.

The policyholder's income

c.

The policyholder's occupation and hobbies

d.

The policyholder's family history

Discuss
Answer: (c).The policyholder's occupation and hobbies Explanation:The underwriter evaluates the occupation and hobbies and the probability of accidents very carefully before assessing the accident risk and granting the Accidental Death Benefit (ADB) rider benefit.
Q99.
Can the Accidental Death Benefit (ADB) rider be declined by the insurance company?

a.

Yes, if the application warrants it

b.

No, it is automatically added to the policy

c.

Only if the policyholder is over a certain age

d.

Only if the policyholder has pre-existing medical conditions

Discuss
Answer: (a).Yes, if the application warrants it Explanation:The Accidental Death Benefit (ADB) rider can be accepted at standard rates, with a loading or can be declined if the application so warrants.
Q100.
What is the Waiver of Premium rider?

a.

A rider used for enhancing the risk cover against accidents

b.

A rider which offers additional amount over and above the sum assured in case of death by accident

c.

A rider used with child plans to waive off premium payments in case of specific events

d.

A rider which provides a premature pay-out of the payment of the base death benefit

Discuss
Answer: (c).A rider used with child plans to waive off premium payments in case of specific events Explanation:The Waiver of Premium rider is used with child plans to waive off premium payments in case of specific events like permanent disability or death of the parent paying the premium.
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