C04 Features of Insurance Contracts MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C04 Features of Insurance Contracts, 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 C04 Features of Insurance Contracts 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 C04 Features of Insurance Contracts mcq questions that explore various aspects of C04 Features of Insurance Contracts problems. Each MCQ is crafted to challenge your understanding of C04 Features of Insurance Contracts 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 C04 Features of Insurance Contracts MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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C04 Features of Insurance Contracts MCQs | Page 2 of 5

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Q11.
According to Indian laws, can insurance protection be sold on a credit basis?

a.

Yes, insurance protection can be sold on a credit basis.

b.

No, insurance protection cannot be sold on a credit basis.

c.

Only for life insurance, it can be sold on a credit basis.

d.

Only for certain categories of insurance, it can be sold on a credit basis.

Discuss
Answer: (b).No, insurance protection cannot be sold on a credit basis. Explanation:Insurance protection cannot be sold on a credit basis in India, as per Section 64 VB of the Insurance Act 1938.
Q12.
Section 59 of the Insurance Rules allows exceptions to the condition of advance payment of premium for which type of insurances?

a.

Life insurance policies

b.

All types of insurances

c.

Sickness Insurance, Group Personal Accident Insurance, Medical Benefits Insurance

d.

Only car insurance policies

Discuss
Answer: (c).Sickness Insurance, Group Personal Accident Insurance, Medical Benefits Insurance Explanation:Section 59 of the Insurance Rules allows exceptions to the condition of advance payment of premium for Sickness Insurance, Group Personal Accident Insurance, Medical Benefits Insurance, and Hospitalisation Insurance Schemes, subject to certain conditions.
Q13.
What is the traditional declaration regarding insurance?

a.

"Insurance is a ready-made product."

b.

"Insurance is the subject matter of solicitation."

c.

"Insurance can only be bought and not sold."

d.

"Insurance must be paid for in full before coverage starts."

Discuss
Answer: (b)."Insurance is the subject matter of solicitation." Explanation:Traditionally, insurers declare that "Insurance is the subject matter of solicitation."
Q14.
Who is responsible for initiating the solicitation process for insurance?

a.

The customer

b.

Any person interested in insurance

c.

An insurance agent

d.

The insurance company

Discuss
Answer: (d).The insurance company Explanation:The solicitation process for insurance is typically initiated by an insurer or an authorised intermediary.
Q15.
What are insurance agents appointed for in the solicitation process?

a.

To provide financial advice to customers

b.

To initiate the solicitation process

c.

To engage in professional sales of insurance products

d.

To handle policy renewals

Discuss
Answer: (c).To engage in professional sales of insurance products Explanation:Insurance agents are appointed by insurers to engage in the solicitation process and procure insurance business, including business relating to the continuance, renewal, or revival of policies of insurance.
Q16.
What is a grace period in insurance?

a.

A period of time during which an insurance policy is inactive.

b.

A period following the premium due date in which a policy can be renewed without loss of benefits.

c.

The waiting period for policy benefits to take effect.

d.

A period during which the policyholder cannot make claims.

Discuss
Answer: (b).A period following the premium due date in which a policy can be renewed without loss of benefits. Explanation:A grace period in insurance is a specified period immediately following the premium due date during which a policy can be renewed without the loss of continuity benefits.
Q17.
In Life insurance, what is the grace period for paying premiums in case of Monthly mode of Premium collection?

a.

7 days

b.

15 days

c.

30 days

d.

90 days

Discuss
Answer: (b).15 days Explanation:In Life insurance, the grace period for paying premiums in case of Monthly mode of Premium collection is typically 15 days.
Q18.
How long is the grace period for renewing Motor Policies?

a.

7 days

b.

15 days

c.

30 days

d.

90 days

Discuss
Answer: (b).########### Explanation:Motor Policies usually need to be renewed before the due date, and there is no grace period for paying the premium.
Q19.
What was the additional grace period allowed for Life insurance policies during the Covid-19 pandemic?

a.

7 days

b.

15 days

c.

30 days

d.

90 days

Discuss
Answer: (c).30 days Explanation:During the Covid-19 pandemic, an additional grace period of 30 days was allowed for Life insurance policies.
Q20.
How long was the grace period allowed for renewing Motor Vehicle Third Party Insurance policies during the Covid-19 pandemic?

a.

7 days

b.

15 days

c.

30 days

d.

90 days

Discuss
Answer: (b).15 days Explanation:During the Covid-19 pandemic, a grace period was allowed until 15th May, 2020, for renewing Motor Vehicle Third Party Insurance policies.
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