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!

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Life Underwriting Principles and Concepts Part 2 MCQs | Page 11 of 14

Discover more Topics under IC22 Life Insurance Underwriting

Q101.
What is TPD in the context of life insurance?

a.

It is the total premium to be paid for a life insurance policy

b.

It is the total amount of death benefit that can be claimed by the nominee

c.

It is a premature pay-out of the base death benefit for permanent disability

d.

It is the term of the life insurance policy

Discuss
Answer: (c).It is a premature pay-out of the base death benefit for permanent disability Explanation:TPD stands for Total Permanent Disability, which is a benefit paid out when the life assured becomes permanently disabled due to an accident and is unable to follow gainful employment.
Q102.
What are the prerequisites for a TPD claim?

a.

Medical evidence that the claimant has become permanently disabled

b.

Supporting evidence that the claimant is unable to follow gainful employment

c.

Evidence that there is no possibility of improvement in the claimant's condition

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:All the given prerequisites are necessary for a TPD claim, as mentioned in the policy contract.
Q103.
What is the meaning of "gainful employment" in the context of TPD?

a.

Any kind of employment that the claimant can take up

b.

Employment that provides regular income and is in line with the claimant's skills and experience

c.

Employment that is equivalent to the claimant's previous occupation

d.

Employment that is offered by the insurance company

Discuss
Answer: (b).Employment that provides regular income and is in line with the claimant's skills and experience Explanation:"Gainful employment" refers to any kind of employment that provides a regular income and is in line with the claimant's skills and experience.
Q104.
Why is the claims process for TPD very careful and may require medical and legal experts?

a.

Because TPD claims are very common and need a lot of scrutiny

b.

Because TPD claims can be fraudulent and require careful assessment

c.

Because TPD claims are difficult to process due to the nature of the disability

d.

Because TPD claims require a lot of evidence and documentation

Discuss
Answer: (b).Because TPD claims can be fraudulent and require careful assessment Explanation:TPD claims can be fraudulent, which is why insurance companies need to be careful and assess them thoroughly, sometimes requiring the help of medical and legal experts.
Q105.
What is a term rider in a life insurance policy?

a.

It is an additional benefit for accidental death

b.

It is a benefit for critical illness

c.

It is an additional amount of death benefit payable to the nominee/s in the case of the life assured's death

d.

It is a benefit for permanent disability

Discuss
Answer: (c).It is an additional amount of death benefit payable to the nominee/s in the case of the life assured's death Explanation:A term rider is an additional amount of death benefit that is payable to the nominee/s in the case of the life assured's death, in addition to the base plan.
Q106.
What is a critical illness rider?

a.

It is an insurance policy that covers the insured against any illness

b.

It is a medical policy that covers the insured against hospitalization expenses

c.

It is an insurance policy that covers the insured against critical illnesses that may be diagnosed in the future

d.

It is a policy that provides the insured with a lump sum amount at the time of diagnosis

Discuss
Answer: (c).It is an insurance policy that covers the insured against critical illnesses that may be diagnosed in the future Explanation:A critical illness rider is a policy that provides cover to the insured against critical illnesses that may be diagnosed in the future.
Q107.
When is the benefit payable to the insured under a critical illness rider?

a.

At the time of diagnosis

b.

After the treatment is completed

c.

Before the diagnosis

d.

None of the above

Discuss
Answer: (a).At the time of diagnosis Explanation:The benefit is payable to the insured at the time of diagnosis.
Q108.
Which of the following critical illnesses may be covered by an insurance company under the critical illness rider?

a.

Paralytic stroke

b.

Heart attack

c.

Organ failure

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Some of the critical illnesses that are covered include paralytic stroke, heart attack, organ failure, major organ transplant, cancer, etc.
Q109.
What is the difference between a critical illness rider and an insurance mediclaim policy?

a.

In a critical illness rider payout, a lump sum is paid irrespective of the actual expenditure incurred on the policy, unlike in a mediclaim policy where only the eligible hospitalization expenditure may be paid.

b.

In a critical illness rider payout, only the eligible hospitalization expenditure may be paid, unlike in a mediclaim policy where a lump sum is paid irrespective of the actual expenditure incurred on the policy.

c.

Both the policies are the same.

d.

None of the above

Discuss
Answer: (a).In a critical illness rider payout, a lump sum is paid irrespective of the actual expenditure incurred on the policy, unlike in a mediclaim policy where only the eligible hospitalization expenditure may be paid. Explanation:In a critical illness rider payout, a lump sum is paid irrespective of the actual expenditure incurred on the policy, unlike in a mediclaim policy where only the eligible hospitalization expenditure may be paid.
Q110.
What is the time period within which the benefit is generally paid under the critical illness rider?

a.

7 days after the diagnosis

b.

15 days after the diagnosis

c.

30 days after the diagnosis

d.

90 days after the diagnosis

Discuss
Answer: (c).30 days after the diagnosis Explanation:The insurance company generally stipulates a time period of 30 days after the illness has been diagnosed for paying the benefit.
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