Banking Financial Awareness · General Awareness
Insurance Policies and Claims
1,580 Questions
Insurance policies provide financial protection against specific perils, involving concepts like deductibles, premiums, and claim settlements. Banking and insurance aspirants need a solid grasp of policy types, coverage limits, and claim procedures. Practice these questions to understand how different insurance principles apply in real scenarios.
Deductible clausesInsurance perilsTravel insurance coveragePolicy conversion rightsClaim dispute avoidanceSubrogation principles
Insurance Policies and Claims Questions
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At the time of taking policy
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At the time of claim
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Both (1) and (2)
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None of the above
A
Correct answer
Explanation
At the time of taking policy, the insurable interest should be present in a life insurance contract.
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paid by cash or by reducing future premiums
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allowed to purchase non-forfeitable paid up additions
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accumulated with interest to be withdrawn at the option of the policy holder
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None of these
D
Correct answer
Explanation
The dividends declared under contribution method can be any of the above.
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Early death claim
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Non-early claim
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Maturity claim
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Surrender
A
Correct answer
Explanation
In early death claim, the insurer orders an investigation.
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Life insurance selling is different from selling other items.
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Life insurance involves concept of selling and hence, is challenging.
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An agent has to create, in his client’s mind, a need for life insurance.
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All of the above
D
Correct answer
Explanation
All of the above are the facts of LIC.
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surrender
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maturity/death
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loan
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None of these
B
Correct answer
Explanation
Terminal bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity.
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customer
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insurance company
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government
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IRDA
B
Correct answer
Explanation
An insurance agent is a representative of insurance company.
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Money laundering is an illegal practice of bringing money into nation’s economy by hiding its source and the true identity of the person involved.
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Life Insurance Company will return the entire premium under free look provisions.
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Moral hazard is not easily assessable unlike physical risk of the proposer.
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Standard and non-standard age proofs are not mutually interchangeable.
B
Correct answer
Explanation
A free look period is where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.
If you have bought a policy and realise you don’t want it, you can return it and get a refund. There are conditions though.
This applies only to life insurance policies and to health insurance policy that are for a term of at least 3 years.
You can exercise this option within 15 days of receiving the policy document
You have to communicate to the company in writing.
The premium refund will be adjusted for proportionate risk premium for the period on cover, expenses incurred by the insurer on medical examination and stamp duty charges.
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IRDA (Licencing of Agents) Regulations, 2000
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IRDA (Protection of Policyholders' Interests) Regulations, 2002
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Insurance Act, 1938
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Government of India directives
B
Correct answer
Explanation
IRDA (Protection of Policyholders' interests) Regulations, 2002 deals with claims.
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Police
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Supreme Court
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Insurance Ombudsman
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District Court
C
Correct answer
Explanation
The Insurance Ombudsman scheme was created by the Government of India for individual policyholders to have their complaints settled out of courts in a cost-effective, efficient and impartial way.
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the claim will be rejected
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the claim will be paid subject to policy conditions
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the claim is payable after deducting the premium
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None of the above
C
Correct answer
Explanation
If a policyholder dies within the grace period, then the claim is payable after deducting the premium.
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Notice of assignment has to be given to the insurer.
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Notice of nomination has to be given to the insurer.
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Both (1) and (2)
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None of the above
C
Correct answer
Explanation
Notice of assignment and notice of nomination have to be given to the insurer.
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I is true.
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II is true.
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Both I and II are true.
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Neither I nor II is true.
B
Correct answer
Explanation
Correct Answer: II is true.
Under MWP Act, in case of a death claim, the policy proceeds are received by the trust and cannot be claimed by the debtors nor will it form part of the estate of the proposer. Hence, the welfare/the wife/child/children are protected with utmost care.
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loan
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human life value
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economic value
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claim
D
Correct answer
Explanation
An insurance contract terminates after claim is paid.
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Insurance Ombudsman has national jurisdiction.
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Insurance Ombudsman has state jurisdiction.
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Insurance Ombudsman has direct jurisdiction.
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Insurance Ombudsman operates only within the specified territorial limits.
D
Correct answer
Explanation
The Ombudsman functions within a set geographical jurisdiction and can entertain disputes relating to partial/total repudiation of claims, delay in settlement of claims, any dispute on the legal construction of the policies in so far as such disputes relate to claims, disputes regarding premium paid or payable in terms of the policy and non-issuance of insurance documents.
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The complaint is to be made in writing.
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The complaint is to be made orally over the phone.
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The complaint is to be made orally in case of a face to face manner.
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The complaint is to be made through newspaper advertisement.
A
Correct answer
Explanation
The complaint is to be made in writing.