C03 Principles of Insurance MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C03 Principles of Insurance, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C03 Principles of Insurance 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 C03 Principles of Insurance mcq questions that explore various aspects of C03 Principles of Insurance problems. Each MCQ is crafted to challenge your understanding of C03 Principles of Insurance principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C03 Principles of Insurance MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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C03 Principles of Insurance MCQs | Page 3 of 7

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Q21.
In the case of insurance contracts, when does the duty to disclose material facts extend?

a.

Throughout the entire period of negotiation until the proposal is accepted

b.

Only during the proposal submission

c.

After the policy is issued

d.

When the policyholder seeks to revive a lapsed policy

Discuss
Answer: (a).Throughout the entire period of negotiation until the proposal is accepted Explanation:The duty to disclose material facts in insurance contracts extends throughout the entire period of negotiation until the proposal is accepted.
Q22.
When is there no further need to disclose any material facts in a life insurance policy?

a.

After the proposal submission

b.

When the policyholder seeks to revive a lapsed policy

c.

After the policy is issued

d.

After the policyholder's health deteriorates

Discuss
Answer: (c).After the policy is issued Explanation:After the life insurance policy is issued, there is no further need to disclose material facts.
Q23.
In the case of health insurance, when does the insured need to inform the insurer about health issues?

a.

After the policy is issued

b.

At the time of policy renewal

c.

During the proposal submission

d.

When the policyholder's health deteriorates

Discuss
Answer: (b).At the time of policy renewal Explanation:In health insurance, the insured needs to inform the insurer about health issues at the time of policy renewal.
Q24.
What is the term for the situation where the insured is silent about material facts because the insurer has not raised specific inquiries?

a.

Concealment

b.

Non-disclosure

c.

Innocent non-disclosure

d.

Deception

Discuss
Answer: (b).Non-disclosure Explanation:The situation where the insured is silent about material facts because the insurer has not raised specific inquiries is called non-disclosure.
Q25.
When is non-disclosure considered concealment?

a.

When the insured intentionally suppresses a fact to deceive the insurer

b.

When the insured inadvertently fails to disclose a material fact

c.

When the insurer has not raised specific inquiries

d.

When the insured fails to pay the premium on time

Discuss
Answer: (a).When the insured intentionally suppresses a fact to deceive the insurer Explanation:Non-disclosure is considered concealment when the insured intentionally suppresses a fact to deceive the insurer.
Q26.
What is the principle based on which insurance contracts operate, demanding the full disclosure of all material facts by the insured?

a.

The Principle of Materiality

b.

The Principle of Caveat Emptor

c.

The Principle of Good Faith

d.

The Principle of Utmost Good Faith (Uberrima Fides)

Discuss
Answer: (d).The Principle of Utmost Good Faith (Uberrima Fides) Explanation:Insurance contracts operate on the principle of Utmost Good Faith (Uberrima Fides), which demands full disclosure of all material facts by the insured.
Q27.
Which of the following is NOT considered a material fact that the insured should disclose in a life insurance proposal?

a.

Occupation of the proposer

b.

Details of pre-existing life insurance policies

c.

The color of the proposed insured's car

d.

Habits like smoking and drinking

Discuss
Answer: (c).The color of the proposed insured's car Explanation:The color of the proposed insured's car is not typically considered a material fact that needs to be disclosed in a life insurance proposal.
Q28.
In the case of general insurance, what must the insured do at the time of policy renewal if there has been a change in the occupancy of a building?

a.

Notify the insurer about the change

b.

Disclose any new material facts

c.

Pay the premium for the next term

d.

Obtain a new policy

Discuss
Answer: (a).Notify the insurer about the change Explanation:In general insurance, the insured must notify the insurer about a change in the occupancy of a building at the time of policy renewal.
Q29.
When non-disclosure is unintentional and occurs without the intention to deceive, it is referred to as:

a.

Concealment

b.

Innocent non-disclosure

c.

Deception

d.

Evasion

Discuss
Answer: (b).Innocent non-disclosure Explanation:When non-disclosure is unintentional and occurs without the intention to deceive, it is referred to as innocent non-disclosure.
Q30.
The duty to disclose material facts applies to which party involved in an insurance contract?

a.

Only the insurer

b.

Only the insured

c.

Both the insurer and the insured

d.

Insurance brokers

Discuss
Answer: (c).Both the insurer and the insured Explanation:The duty to disclose material facts applies to both the insurer and the insured in an insurance contract.
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