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 9 of 14

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Q81.
In which case would an underwriter decline a proposal?

a.

When the applicant is young and healthy

b.

When the applicant has a minor medical condition

c.

When the applicant engages in dangerous hobbies

d.

When the applicant is highly substandard and the extra risk may remain constant or even get worse

Discuss
Answer: (d).When the applicant is highly substandard and the extra risk may remain constant or even get worse Explanation:An underwriter may decline a proposal when the applicant is highly substandard to such an extent that the extra risk may remain constant or even get worse, and neither postponement of risk nor charging of extra premium will help manage the extra risks.
Q82.
Can an underwriter decline a proposal from an applicant with an incurable disease?

a.

Yes, they can always decline the proposal.

b.

No, they must always accept the proposal.

c.

It depends on the severity of the disease.

d.

It depends on the applicant's age and occupation.

Discuss
Answer: (a).Yes, they can always decline the proposal. Explanation:Underwriters can decline proposals from individuals who are suffering from some incurable diseases or conditions, as postponement of risk or charging of extra premium will not help manage the extra risks.
Q83.
In which of the following ways can an insurance company communicate its terms of acceptance to a life insured?

a.

FPR

b.

Policy contract

c.

Consent form

d.

Proposal form

Discuss
Answer: (b).Policy contract Explanation:After the underwriting process, the insurance company communicates its terms of acceptance to a life insured through a policy contract. The policy contract contains the details of the insurance cover, including the premium payable, policy period, sum assured, and terms and conditions of the policy. The policy contract is a legal document that serves as proof of the insurance cover and provides clarity on the coverage and limitations of the policy. The proposal form is the initial document submitted by the life insured to the insurer, providing details about the applicant and the risk to be covered. The FPR (Full medical underwriting - Personal statement, medical examination and doctor’s report) is a type of underwriting process that includes a personal statement, a medical examination, and a doctor's report. The consent form is a document that confirms that the life insured has read and understood the policy contract and agrees to its terms and conditions.
Q84.
What are riders in life insurance policies?

a.

Optional additional coverage and benefits

b.

Required coverage and benefits

c.

Special discounts on premium

d.

A type of exclusion

Discuss
Answer: (a).Optional additional coverage and benefits Explanation:Riders are optional additional coverage and benefits that are offered along with basic life insurance policies to enhance the benefits that will be payable to the policyholders.
Q85.
When can riders be added to a life insurance policy?

a.

Only at the commencement of the policy

b.

Only at the policy anniversaries of the contract

c.

At any time during the policy term

d.

Only if the policyholder has a pre-existing condition

Discuss
Answer: (c).At any time during the policy term Explanation:Riders can be added either at the commencement of the policy or from the period coinciding with the policy anniversaries of the contract.
Q86.
Do riders need to be underwritten like the base cover?

a.

Yes

b.

No

c.

Only in certain cases

d.

It depends on the rider type

Discuss
Answer: (a).Yes Explanation:Riders also need to be underwritten like the base cover and can have decisions ranging from standard premium, extra premium, or decline.
Q87.
Which rider can be added only at the commencement of the policy contract?

a.

Accidental death benefit rider

b.

Critical illness rider

c.

Term rider

d.

Total permanent disability benefit rider

Discuss
Answer: (c).Term rider Explanation:Certain riders can be added only at the commencement of the policy contract.
Q88.
What is the purpose of the waiver of premium (WoP) rider or Premium Waiver Benefit (PWB) rider?

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 waive the premium payments in case of the policyholder's death

d.

To provide an additional sum assured in case of critical illness

Discuss
Answer: (c).To waive the premium payments in case of the policyholder's death Explanation:The waiver of premium (WoP) rider or Premium Waiver Benefit (PWB) rider is designed to waive the premium payments in case of the policyholder's death.
Q89.
What is the purpose of the critical illness (C.I.) rider?

a.

To waive the premium payments in case of critical illness

b.

To provide an additional sum assured in case of accidental death

c.

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

d.

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

Discuss
Answer: (d).To provide a lump-sum payment upon diagnosis of a critical illness Explanation:The critical illness (C.I.) rider is designed to provide a lump-sum payment upon diagnosis of a critical illness.
Q90.
What is the purpose of the accidental death benefit (ADB) rider?

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 accidental death

Discuss
Answer: (d).To provide an additional sum assured in case of accidental death Explanation:The accidental death benefit (ADB) rider is designed to provide an additional sum assured in case of accidental death.
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