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.

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Life Underwriting Principles and Concepts Part 2 MCQs | Page 13 of 14

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Q121.
What is the dating back of policy?

a.

When an insurer charges premium based on the age at entry for traditional plans

b.

When an insured avails the benefit of lower age and premium during the entire tenure of the policy contract

c.

When the commencement date of the policy is taken as the earlier date, against the date mentioned in the proposal form

d.

When a policy is purchased within the financial year

Discuss
Answer: (c).When the commencement date of the policy is taken as the earlier date, against the date mentioned in the proposal form Explanation:The dating back of a policy is an option available to the insured to avail the benefit of lower age. Under this, the commencement date of the policy is taken as the earlier date, against the date mentioned in the proposal form.
Q122.
Why do insurers allow dating back of policy?

a.

To charge a higher premium amount

b.

To increase the entry age of the insured

c.

To provide the insured with the benefit of a lower age and lower premium

d.

To reduce the tenure of the policy contract

Discuss
Answer: (c).To provide the insured with the benefit of a lower age and lower premium Explanation:Insurers sometimes give the client the benefit of a lower age, and therefore lower premium during the entire tenure of the policy contract, and this is known as date-back the policies.
Q123.
What is the advantage of dating back of policy?

a.

The policyholder has to pay a higher premium amount because of his higher age

b.

The policyholder has to pay a lower premium amount because of his lower age

c.

The policyholder gets a shorter tenure for the policy contract

d.

The policyholder gets more coverage under the policy

Discuss
Answer: (b).The policyholder has to pay a lower premium amount because of his lower age Explanation:The advantage of dating back of policy is that the policyholder has to pay a lower premium amount because of his lower age.
Q124.
Can term plans be back-dated?

a.

Yes

b.

No

c.

It depends on the insurer

d.

It depends on the type of term plan

Discuss
Answer: (b).No Explanation:Term plans cannot be back-dated.
Q125.
How does dating back of policy benefit the insured?

a.

By providing them with more coverage

b.

By giving them a higher entry age

c.

By reducing the tenure of the policy contract

d.

By giving them a discount on their premium throughout the tenure of the policy

Discuss
Answer: (d).By giving them a discount on their premium throughout the tenure of the policy Explanation:The insured benefits from dating back of policy by way of discount on their premium throughout the tenure of the policy.
Q126.
What is the maximum duration within which a policy can be back-dated?

a.

1 month

b.

3 months

c.

6 months

d.

1 year

Discuss
Answer: (d).1 year Explanation:A policy can be back-dated within the financial year in which it is purchased. For example, if a person purchases a policy in June 2011, the policy can be back-dated to April 2011.
Q127.
Can backdating of a policy go beyond the financial year in which the application is taken for policy issuance?

a.

Yes

b.

No

c.

Only for certain policies

d.

Only for policies with higher premiums

Discuss
Answer: (b).No Explanation:Under no circumstances can backdating of a policy go beyond the financial year in which the application is taken for policy issuance.
Q128.
Is interest charged for dating back a policy for certain plans?

a.

Yes

b.

No

c.

Only for policies with lower premiums

d.

Only for policies with higher premiums

Discuss
Answer: (a).Yes Explanation:Some insurers charge interest when the dating back option is exercised by the proposer for certain plans.
Q129.
In policies which are dated back, what is the difference between the date of commencement of policy and the date of commencement of risk?

a.

They are the same

b.

There is a difference of one month

c.

There is a difference of six months

d.

There is always a difference between the two dates

Discuss
Answer: (d).There is always a difference between the two dates Explanation:In policies which are dated back, the date of commencement of policy (D.O.C) is always different from the date of commencement of risk (D.O.R).
Q130.
Can a policy be dated back if the insured is not eligible for insurance on the date of application?

a.

Yes

b.

No

c.

Only for certain policies

d.

Only for policies with higher premiums

Discuss
Answer: (b).No Explanation:The dating back of a policy can be done only if the insured is eligible for insurance on the date of application.
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